US: Cryptocurrency Platform Celsius Files for Bankruptcy

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The cryptocurrency investment platform Celsius announced on Wednesday (07.13.2022) that it is filing for bankruptcy in the United States, a month after freezing withdrawals from its system on behalf of other similar services.

In his statement, Celsius it said it was seeking to restructure to “maximize value for all stakeholders” and reported that it had $167 million in cash on hand to meet urgent needs.

If withdrawals had not been frozen on June 12, the rout “would have allowed some customers, the first to withdraw, to be fully refunded while leaving others waiting,” said the special committee of the board of directors of Celsiuswhich cited the statement.

Celsius welcomed the Chapter 11, which in the United States allows companies that cannot pay their debts to restructure and remain safe from their creditors while continuing to operate. “This is the right decision for our community and our business,” said Alex Mashinsky, co-founder and CEO of Celsius.

The week before, the cryptocurrency lender Voyager Digital went bankrupt, while other companies like CoinFlex y Babel Finance withdrawals were frozen due to lack of liquidity. In the cryptocurrency industry, Celsius it was one of the biggest players with 1.7 million customers as of June 2022.

Bitcointhe flagship cryptocurrency, has lost more than half of its value since the beginning of 2022 and is trading around $20,000, after reaching almost $69,000 in November 2021.

but (afp, Reuters)

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