Celsius Network has filed for bankruptcy in a New York court.
moments ago, @CelsiusNetwork filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring. https://t.co/vf5wsT6TMp
— Celsius (@CelsiusNetwork) July 14, 2022
The request was submitted in accordance with Chapter 11 United States Bankruptcy Code. The company hopes that the restructuring will “maximize value for all stakeholders.”
“The directed petition is the result of a difficult but necessary decision by Celsius last month suspend withdrawals, exchanges and transfers on the platform to stabilize their business and protect customers,” the company commented.
Also Celsius reportedwhich has $167 million in cash to provide liquidity and support certain operations in the restructuring process.
Now most of the operations on the platform are suspended, but the company will continue to work.
Recall that on July 13, Celsius made payment on the last large loan in the Compound DeFi protocol and withdrew just under $200 million to WBTC, and the day before, a loan in the Aave protocol, freeing up more than 400,000 stETH collateral.
Now the price of the CEL token has fallen by 16%, according to CoinGecko.
