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US cryptocurrency company Celsius has filed for bankruptcy protection with the aim of “stabilizing its business” as the cryptocurrency winter begins.
Celsius file for bankruptcy
Celsius said voluntary Chapter 11 proceedings at the US Bankruptcy Court in Southern New York with the aim of “completed a comprehensive restructuring transaction that maximizes the value of all stakeholders” and continued business. It states that it has started.
According to the company, it has $ 167 million in cash “sufficient liquidity” to support certain businesses during the restructuring process.
Celsius also filed a series of allegations to allow the company to pay employees and continue their interests without confusion.
However, the company states that it “does not require the authority to allow the customer to withdraw at this time,” and the customer’s claims are set to be addressed through the process in Chapter 11.
The move took place after Mr. Celsius suspended the withdrawal last month to stabilize liquidity and protect and protect assets due to “extreme market conditions.”
Regarding the decision to file for bankruptcy, Celsius co-founder and CEO Alex Mashinsky said: A strong and experienced team is in place to guide Celsius through this process.
Looking back at Celsius’ history, this is a crucial moment and I am convinced that acting with determination and confidence has contributed to the community and strengthened the future of the company.
The company has also appointed two new directors to its board of directors, David Barse, CEO of XOUT Capital, and Alan Carr, investment expert, to provide “additional leadership and expertise.”
Regarding the suspension of the withdrawal last month, the board said, “The accelerated withdrawal will pay the full amount to one customer (the first customer to act), while others will wait for Celsius to harvest. It says it could have been. Value from illiquid or long-term asset development activities before the recovery. “
Celsius will join Voyager Digital, a US-based crypto lender who filed for bankruptcy protection last week, shortly after suspending all transactions, deposits and withdrawals on the platform.
