Cryptocurrency lender Celsius applied for Chapter 11 bankruptcy. A release by the company says that the filing is voluntary and aims to steady the business through restructuring and generate maximal value for all stakeholders.
Related: Cryptocurrency Lender Voyager Files for Bankruptcy
Moments ago, @CelsiusNetwork filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring. https://t.co/vf5wsT6TMp
— Celsius (@CelsiusNetwork) July 14, 2022
Last month, the platform stopped functions of withdrawing, swapping, and transferring crypto. Celsius also mentioned in a case of accelerating withdrawals, certain users acting first would be able to receive full payments but others would have to wait for the platform to generate value before a recovery.
The lending platform has $167 M in cash, which will enable liquidity to support some functions in restructuring. According to Celsius Chief Executive Officer Alex Mashinsky, this is the right step for the community and company. He mentioned that Celsius has an experienced team that will head the platform during the process.
In June, Celsius paid back its debt of over $900 M to dapps Aave, Compound and MakerDAO.