Crypto lending platform Celsius Network has been in the news several times over the past few weeks. The company has made repeated headlines given that it took a big step towards centralization and ultimately paused all customer withdrawals as a means of coping with ongoing market volatility.
Celsius Is Filing Bankruptcy
Sadly, things didn’t quite stop here. Word has since been received that Celsius is now entering bankruptcy proceedings, hinting that maybe this crypto winter was too powerful for it to handle. Right now, the company is being investigated by several financial regulators in Washington, Texas, and New Jersey, and it doesn’t look like there’s a light at the end of the tunnel for Celsius or its staff.
Members of the special committee of the board of directors for Celsius announced the following:
Šiandien paraiška buvo pateikta po sunkaus, bet būtino Celsius praėjusio mėnesio sprendimo pristabdyti išėmimus, apsikeitimus ir pervedimus savo platformoje, kad būtų stabilizuotas verslas ir apsaugoti klientai. Be pauzės, paspartėjęs išėmimas būtų leidęs tam tikriems klientams – tiems, kurie ėmėsi veiksmų – sumokėti visą sumą, o kitiems būtų likę laukti, kol Celsius surinks vertę iš nelikvidžios ar ilgesnės trukmės turto diegimo veiklos, kol jie gautų atsigavimas.
At the time of writing, the company has roughly $167 million in cash on hand to ensure liquidity and boost certain operations as the firm tries to restructure itself. In filing Chapter 11 bankruptcy, Celsius is not necessarily shutting its doors completely, and customers are not necessarily in danger of losing all their money.
Celsius is simply protecting itself during this time to ensure it can take steps to restructure its protocols and prevent customers from suing them or taking drastic measures to remove their funds from the lending platform. Until the hearings end, customers will still be unable to make withdrawals.
Celsius is not the first bankruptcy victim to emerge from the harsh crypto bear market. Three Arrows Capital – a digital currency hedge fund – took similar action a few weeks ago. A court document stated the following:
Pateikdami prašymą pradėti šią 15 skyriaus bylą (toliau – 15 skyriaus byla), užsienio šalių atstovai siekia išlaikyti aktyvias atskirų kreditorių pastangas areštuoti turtą ir išsaugoti status quo bei suteikti užsienio atstovams galimybę stabilizuoti skolininko turtą. , išsaugoti skolininko turtą ir atlikti išsamų skolininko, pretenzijų dėl jo turto ir jo turto tyrimą, įskaitant ieškinio priežastis.
Tiek daug įmonių krito
This move succeeded other bankruptcy proceedings initiated by Voyager Digital, a crypto lender. Stephen Ehrlich – the chief executive of the company – explained:
The prolonged volatility and contagion in the crypto markets over the past few months… require us to take deliberate and decisive action now.
Source: https://www.livebitcoinnews.com/celsius-network-is-next-crypto-company-to-file-bankruptcy/