The crypto crash has claimed another corporate casualty: Celsius Network has filed for Chapter 11 bankruptcy. The crypto lending firm’s future has been in question since it abruptly halted all withdrawals and transfers exactly one month ago. He now hopes to continue operating on his remaining $167 million in cash while the bankruptcy courts restructure the business.
According to Celsius Network’s filing, the company has between $1 billion and $10 billion in assets, but owes a similar amount. The five largest claims range between $20 million and $80 million each. The company was valued at $3.25 billion last year, according to Fortune, and was managing up to $24 billion in assets before this year’s sale. It would have dropped to around $12 billion before locking in withdrawals, but the bankruptcy filing suggests it has less now.
There have been… questions, to say the least, about Celsius’ business model and operations. We describe some of them here.
Celsius now says it halted withdrawals last month to avoid a bank run: “Without a pause, the acceleration in withdrawals would have allowed some customers – those who were the first to act – to get paid in full while leaving others to wait for Celsius to reap value from illiquid or longer-lived asset deployment activities before they receive a clawback,” reads part of the press release. of society today.
Crypto hedge fund Three Arrows was also forced to file for bankruptcy earlier this month.