Celsius network files for bankruptcy

Celsius Network, one of the largest cryptocurrency lenders, has filed for bankruptcy protection. The company stated that the decision to file for bankruptcy would give the company an “opportunity to stabilize its business.”

The startup was valued at US$3.25 billion when it expanded its “oversubscribed” Series B financing round to US$750 million in November.

In a Chapter 11 bankruptcy filing in federal court in New York, the company said it has assets and liabilities ranging from US$1 billion to US$10 billion and more than 100,000 creditors.

“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,” Alex Mashinsky, co-founder and Chief Executive Officer (CEO) of Celsius, wrote in a statement.

The decision to file for bankruptcy came a month after the freezing of customer assets in the wake of sharp turmoil in the cryptocurrency market, which has affected several companies.

The decision also followed weeks of speculation about the financial strength of the company, which had successfully established itself as one of the largest crypto banks and promised customers better returns.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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