Celsius files for 'immediate' bankruptcy

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Cryptocurrency lender Celsius has filed for "immediate" bankruptcy in the Southern District of New York, under the provisions of Chapter 11 of the US Bankruptcy Code.

Celsius was one of the largest cryptocurrency lending services – as of May of this year, the company had a loan portfolio of $8 billion and managed $12 billion in funds.At the beginning of July, Celsius' debt was about $820 million, with most of the debts already paid.However, it is not yet clear whether Celsius has enough funds to pay deposits to customers.

The company stressed its intention to pay off all debts, but financial specialists fear that the reimbursement process will drag on for a long time and becomeFor example, this opinion was expressed by the head of the tax department at Konly, Danny Talwar(Danny Talwar).

In a statement, Celsius said it plans to use the $167 million in funds to "continue certain activities" during the restructuring process.In the future, it is planned to restore "activity on the platform" and "return funds to customers".In the meantime, withdrawals for users of the service are disabled.

"This is the right decision for our user community and the company.We have a strong and experienced team that will conductCelsius through this process, and I'm sure that when we look back in the future, thiswill be a defining moment in Celsius' history as our confident actions have helped the community and secured the future of the company," the co-founder and CEO wroteCelsius by Alex Mashinsky.

Earlier it was reported that Vermont authorities were involved in the pursuit of the Celsius service. In addition, it recently became known that Celsius hired a new law firm to restructure its debt.