Nearly a month after suspending the withdrawal of funds in cryptocurrency for its clients, Celsius Network has declared bankruptcy

Cryptocurrency lender Celsius filed for bankruptcy protection on Wednesday and invoked Chapter 11 US bankruptcy law to provide the company with an opportunity to stabilize its business and Complete a comprehensive restructuring process that increases value for all stakeholders.

To carry out the restructuring, the company and some of its subsidiaries have filed voluntary reorganization petitions by law with the Southern District Court in New York.

Members of the Board of Directors’ Special Committee said: “Today’s registration follows Celsius’ difficult but necessary decision last month to temporarily halt withdrawals, exchanges and transfers on its platform in order to stabilize its business and protect its customers. Non-stop Expediting withdrawals would have allowed some novice clients to get full payments while others wait for the percentage score to collect value from illiquid asset spread activities. or in the long term before receiving a refund payment.”

“This is the right decision for our community and our company,” said Alex Mashinsky, co-founder and CEO of Celsius. “We have a strong and experienced team to guide Celsius through this process. I am confident that when we look back at Celsius’ history, we will see this as a defining moment, as the business serves the determination and confidence of the community and strengthens the company’s future to continue the business.”

Celsius has $167 million in cash on hand, which will provide enough liquidity to support certain operations during the restructuring process.

To ensure a smooth transition to Chapter 11, Celsius has submitted to the court a series of customary motions to allow the company to continue operating in the normal course. These “first day” moves include requests to pay employees and continue their benefits without interruption, for which the company expects court approval. Celsius No authority is requested to allow customer withdrawals at this time. Customer complaints will be handled through the process set out in Chapter 11 of the Legal Regulations.

new managers

David Barse is the founder and CEO of XOUT Capital, an index company, and DMB Holdings, a private family office. Previously the CEO of Third Avenue Management for 25 years, Pars pioneered bottom-up fundamental investing and deep value investing.

Alan Carr is an investment expert with over 25 years of experience building businesses, driving complex transformations, and protecting and creating value for stakeholders. Carr is the founder and managing member of Drivetrain, LLC, a professional credit services company.

Based on the belief that financial services should only do what is best for customers and society, Celsius is a blockchain platform where membership provides access to select financial services not available through traditional financial institutions.

(With information from AFP)

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