Another one bites the dust, this time with New Jersey-based crypto lender Celsius Network filing for bankruptcy.
Celsius Network has filed for bankruptcy, according to a «Reuters» report citing documents submitted to the U.S. Bankruptcy Court for the Southern District of New York. The troubled crypto lender estimates that it has consolidated assets and liabilities totaling $1 billion to $10 billion.
Celsius is not requesting authority to allow withdrawals at this time, according to a statement from the firm – it first froze withdrawals and transfers last month from its 1.7 million customers – but has instead filed motions to allow the continuation of normal operations. Meanwhile, Celsius has $167 million of cash on hand to support certain operations during the restructuring process.
Crypto Crash
A $2 trillion wipeout in crypto markets since peaking in November 2021 has created massive liquidity pressures throughout the industry with an increasing number of players becoming insolvent.
In addition to Celsius, fellow crypto lender Voyager Digital Ltd had filed for bankruptcy in US courts on July 6 after suspending withdrawals and deposits. Crypto hedge fund Three Arrows – the whereabouts of its founders remain unknown – also filed for bankruptcy in US courts after reportedly being ordered into liquidation by a British Virgin Islands court.
