New Delhi: Crypto lending firm Celsius Network, which recently laid off 150 employees, has now filed for bankruptcy in the US amid extreme market conditions. The platform said it initiated voluntary Chapter 11 bankruptcy proceedings to provide it with an opportunity to stabilize its business and complete a comprehensive restructuring transaction that maximizes value for all stakeholders. Celsius said late Wednesday it has $167 million in cash, which will provide enough liquidity to support some operations during the restructuring process.
The platform, which halted all withdrawals last month, was last valued at $3.25 billion.
“Without a pause, the acceleration of withdrawals would have allowed some clients – who were the first to act – to make full payments, while leaving others behind to wait for Celsius to do aliquot or long-term asset deployment activities. Will have to wait for the price before that. They get a recovery,” the company said. Celsius co-founder and CEO Alex Mashinsky said it was the right decision for his community and company. ,Also read: Sensex up 239 points, Nifty 16000. above,
“I am confident that as we look back at Celsius’ history, we will see this as a defining moment where working with determination and confidence has served the community and strengthened the future of the company,” he said. Meanwhile, the founder of another bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) has gone missing and officials accused of liquidating the company were searching for his whereabouts. ,Also read: HDFC to raise debt of up to Rs 5,000 crore this week,
The mega fund, founded by Credit Suisse businessmen Zhu Su and Kyle Davis, once managed an estimated $10 billion in assets. Singapore-based 3AC filed for bankruptcy in the US earlier this month to protect its assets from creditors.
Popular crypto tokens such as bitcoin and ethereum plunged nearly 70 percent from their record highs amid the economic downturn as bankruptcy loomed. 3AC defaulted on a loan of over $650 million provided by crypto broker Voyager Digital, which has also filed for bankruptcy.