Celsius reportedly filing for bankruptcy ‘imminently’

Cryptographic lending platform Celsius has reportedly filed for Chapter 11 bankruptcy, and the lawyer has begun notifying individual US state regulators as of Wednesday, July 13.

The news is report Mentioned an unnamed source by CNBC. An unnamed source asked not to name the minutes because they are private. They said the company plans to submit the documents for Chapter 11 “soon.”

Just days after a puzzled lending platform replaced the previously employed law firm Akingamp Strausshower and Feld LLP with Kirkland & Ellis LLP, the same company that helped Voyager Digital in a bankruptcy filing last week. That is.

Earlier that day, Celsius closed the final DeFi debt owed to Compound, Aave, and Maker, reducing the initial debt of $ 820 million to just $ 0.013 in a month.

But what remains unclear is the fate of depositors who keep their assets trapped in the lending platform. Neither the company nor CEO Alex Mashinsky has made public comments on whether depositors will receive a portion of the funds.

Vermont Financial Regulatory Authority (DFR) on Tuesday issued Warning to problematic crypto lenders. The company reminds consumers that they do not have a license to provide services in the state.

The DFR also believes that the company is “bankruptcy serious” and does not have the “assets and liquidity” to meet its obligations to its clients, and mistakenly allocates its clients’ funds to risky investments. He accused him of managing it.

Related: Alleged fraudulent bomb when KeyFi takes Celsius to court

Vermont has joined Alabama, Kentucky, New Jersey, Texas, Washington, and others, making it the sixth state in the United States to begin investigating Celsius cryptocurrency accounts.

Rumors of Celsius’ bankruptcy began to spread last month after cryptocurrency lenders were forced to suspend their withdrawal due to “extreme market conditions” on June 13.