Embattled crypto lender Celsius files for bankruptcy protection

July 15, 2022 World Blockchain

Crypto company Celsius has started the process of filing for Chapter 11 bankruptcy protection after a month of turmoil.

In a Wednesday statement, Celsius said it would look to stabilize its business by restructuring in a way “that maximizes value for all stakeholders.” Celsius said it has $167 million in cash on hand to support operations in the meantime.

Earlier, CNBC reported the company’s lawyers were notifying individual U.S. state regulators as of Wednesday evening, according to a source, who asked not to be named because the proceedings were private.

“This is the right decision for our community and company,” Alex Mashinsky, co-founder and CEO of Celsius said in a statement. “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.”