Celsius, a popular crypto lending platform, has allegedly submitted an application for Chapter 11 bankruptcy. This comes after the platform made headlines a few weeks ago for preventing its clients from withdrawing their assets. They blamed the decision to freeze clients’ accounts on the poor market conditions at the time.
Celsius reportedly notified regulators of their intentions on July 13. According to reports, the reason for filing for Chapter 11 bankruptcy was to “provide the Company with the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.”
The CEO and co-founder of Celsius, Alex Mashinsky, stated,
“This is the right decision for our community and company. 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.”
During the reported restructuring, reports claim that Celsius will use its $167 million cash to “support certain operations during the restructuring process.”
Celsius hired the services of Kirkland & Ellis LLP, the firm that handled Voyager Digital’s bankruptcy case.
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