Celsius Network, one of the largest cryptocurrency lending platforms in the world, has filed a petition with the United States court for receivership under Section 11 of the Bankruptcy Act after the company was hit hard by the volatility in the crypto market.
Celsius stated on Wednesday, July 13, saying:
“The company is looking at ways to stabilize its business through a restructuring approach expected to add maximum value to all shareholders. The company currently has about $167 million in cash to support the business in the future.”
According to a source, CNBC reported that the company’s lawyers were notifying individual US state regulators as of Wednesday evening.
“This is the right decision for community and company,” Alex Mashinsky, co-founder and CEO of Celsius, said in a statement. “I am very confident that when we look back at the history of Celsius, we will see this as defining moment, where acting with confidence served the community and strengthened the company’s future.”
Celsius was one of the largest players in the crypto lending space, with more than $8 billion in client loans and almost $12 billion in assets under management as of May. Still, the structure crashed amid a liquidity crunch in the industry.