Celsius Network officially files for bankruptcy. Exactly one month after the crypto lending firm, Celsius Network, first halted all withdrawals and transfers due to the crypto market conditions, today, the company has announced through its Twitter account that it has officially filed for a Chapter 11 bankruptcy.
Through its filings, Celsius explains that it would “continue to operate” with its remaining $167 million in cash on hand, which will provide enough liquidity to support its remaining operations while bankruptcy courts restructure the company.
— Celsius (@CelsiusNetwork) July 14, 2022
Celsius explained in its recent press release that it halted withdrawals last month to avoid a bank run, quoting “Without a pause, the acceleration of withdrawals would have allowed certain customers—those who were first to act—to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery,“
The Right Decision
Through the press release, Co-Founder and CEO of Celsius, Alex Mashinsky expresses his opinion that filing for bankruptcy, saying “This is the right decision for our community and company,“
“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.” He says.