Celsius Networks files for bankruptcy

C

ryptocurrency yield generator and lender Celsius Networks has announced the filing for bankruptcy.

Last month transfers and withdrawals between accounts was suspended. Regulators in Texas, Washington and New Jersey are investigating the lender.

The Celsius special commitee of the board of directors said “Today’s filing follows the difficult but necessary decision by Celsius last month to pause withdrawals, swaps, and transfers on its platform to stabilise its business and protect its customers.

Without a pause, the acceleration of withdrawals would have allowed certain customers – those who were first to act – to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.”

The company has stated that it has $167m of cash on hand for liquidity. It listed estimated assets and liabilities at between $1bn and $10bn.

Chris

An editor at Coincrop

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Chris is a Crop Crop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely assembling lego models.