Crypto Lender Celsius Files For Chapter 11 Bankruptcy In New York
Celsius Files For Bankruptcy
In a Wednesday statement, Celsius filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York to start a financial restructuring process. The company stated that it has $167 million in cash to support certain operations during the restructuring process.
Celsius last month stopped withdrawals, swaps, and transfers between accounts, citing the need to "stabilize its business and protect its customers," according to its bankruptcy filing.
"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."
US State Regulator Called Celsius 'Deeply Insolvent'
The decision by Celsius to file for bankruptcy came on the same day Vermont's regulator announced that it had launched an investigation into whether the company violated state security laws.
The state regulator even went ahead to say that it "believes Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors."