Crypto lender Celsius has filed for bankruptcy a month after freezing customer withdrawals.
Crypto lender Celsius has filed for bankruptcy one month after freezing customer withdrawals.
In a statement, Celsius said it had initiated voluntary Chapter 11 proceedings to provide it with the opportunity to stabilise its business and ?consummate a comprehensive restructuring transaction that maximises value for all stakeholders?.
To implement the restructuring, the company and some of its subsidiaries filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
This will allow it to keep operating while restructuring its financial obligations. Other companies who have successfully reorganised under Chapter 11 include American Airlines, Delta, General Motors, Hertz, and Marvel.
?This is the right decision for our community and company,? Celsius co-founder and chief executive officer Alex Mashinsky said.
?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.?
Celsius describes itself as a blockchain-based platform where membership provides access to curated financial services that are not available through traditional financial institutions.
It said it had $167 million in cash on hand, which would provide ample liquidity to support certain operations during the restructuring process.
The move follows Celsius? decision on June 12 to pause withdrawals, Swap and transfers on its platform, which it said was necessary to stabilise its business and protect its customers.
More: https://www.news.com.au/finance/business/crypto-lender-celsius-files-for-bankruptcy/news-story/b73d034f1fb6128d2611adafb376d080
Crypto lender Celsius has filed for bankruptcy one month after freezing customer withdrawals.
In a statement, Celsius said it had initiated voluntary Chapter 11 proceedings to provide it with the opportunity to stabilise its business and ?consummate a comprehensive restructuring transaction that maximises value for all stakeholders?.
To implement the restructuring, the company and some of its subsidiaries filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
This will allow it to keep operating while restructuring its financial obligations. Other companies who have successfully reorganised under Chapter 11 include American Airlines, Delta, General Motors, Hertz, and Marvel.
?This is the right decision for our community and company,? Celsius co-founder and chief executive officer Alex Mashinsky said.
?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.?
Celsius describes itself as a blockchain-based platform where membership provides access to curated financial services that are not available through traditional financial institutions.
It said it had $167 million in cash on hand, which would provide ample liquidity to support certain operations during the restructuring process.
The move follows Celsius? decision on June 12 to pause withdrawals, Swap and transfers on its platform, which it said was necessary to stabilise its business and protect its customers.
More: https://www.news.com.au/finance/business/crypto-lender-celsius-files-for-bankruptcy/news-story/b73d034f1fb6128d2611adafb376d080