Crypto Lending Platform Celsius Files For Bankruptcy

After weeks of speculation and rumors, lawyers representing crypto lending platform Celsius have officially notified regulators the company is filing for Chapter 11 bankruptcy protection, according to Wall Street Journal.

"This is the right decision for our community and company," Celsius Co-Founder & CEO Alex Mashinsky said in a press release posted late Wednesday. "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," he continued.

Celsius says the filing will provide the opportunity to stabilize its business and consummate a comprehensive restructuring that maximizes value for all stakeholders.

Celsius said it isn’t seeking court approval to allow customer withdrawals “at this time,” meaning accounts will stay frozen as the lender restructures in bankruptcy and addresses customer claims through the chapter 11 process.

By Amy Liu

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