Celsius files for bankruptcy
2022-07-15![Celsius files for bankruptcy Celsius files for bankruptcy](https://varindia.com/storage/news/uploads/2018/02/62d146b53ae03.jpg)
Cryptocurrency lender Celsius Network filed for Chapter 11 bankruptcy. With more than 100,000 creditors, Celsius said it took the step to stabilise its business and work out a restructuring for all stakeholders.
Celsius allowed users to deposit their Bitcoin, Ethereum and Tether and receive weekly interest payments. The platform offers as much as 18% interest a year, depending on the time horizon and the token. The lender said it is not requesting authority to resume customer withdrawals at this time.
Celsius said, “To ensure a smooth transition into Chapter 11, Celsius has filed with the Court a series of customary motions to allow the Company to continue to operate in the normal course. These ‘first day’ motions include requests to pay employees and continue their benefits without disruption, for which the Company expects to receive Court approval. Celsius is not requesting authority to allow customer withdrawals at this time. Customer claims will be addressed through the Chapter 11 process.”
The company is one of the largest cryptocurrency lenders and had amassed more than $20 billion in assets by offering interest rates as high as 18 percent to depositors before it halted all withdrawals in June amid a panic run by clients.
Alex Mashinsky, Co-founder and CEO of Celsius said, “We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”
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