Celsius Blockchain DeFi Lender Files for Bankruptcy

The hammer has struck: Celsius Network, a New Jersey-based crypto lending services provider, announced on Wednesday that it has filed for Chapter 11 bankruptcy. After a series of descending cryptocurrency price swings that saw the crypto market bleed around 60% of its valuation in six months – and a number of miscalculated risks – the provider says its bankruptcy filing aims to enable a “comprehensive restructuring plan” to the benefit of “all stakeholders”. As is often the case, shark and whale lenders have started feeding on the bloodbath before other, less leveraged investors do.

When opening Celsius Network’s website, viewers are greeted with a message pointing towards a blog post on the bankruptcy filing. (Image credit: Celsius Network)

According to the filing in the US Bankruptcy Court for the Southern District of New York, Celsius estimated its assets and liabilities to be in the range of $1 billion to $10 billion. The bankruptcy filing comes after the Decentralized Finance (DeFi) player froze all withdrawals, swaps, and transfers on its platform “to stabilize its business and protect its customers” on June 12. Interestingly, Celsius took much longer to freeze deposits, which led to some users’ funds being pulled towards its financial black hole after the freeze took place.

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