HomeCryptocurrencyCrypto lender Celsius files for bankruptcy in New York

Crypto lender Celsius files for bankruptcy in New York

Cryptocurrency lender Celsius Network has filed for bankruptcy in New York, becoming the latest company to fall victim to the current crypto bear run. This news comes days after another crypto lender, Voyager Digital, filed for bankruptcy on July 6.

As reported by Reuters, Celsius has requested the authority not to allow customer withdrawals at this time, although they have $167 million in hand at the moment. This money will be used to provide liquidity for certain day-to-day operations during the restructuring process.

Binance signs TikTok star Khaby Lame to promote and foster Web3

The company is currently under investigation by multiple American state regulators and authorities for the manner in which it unilaterally froze withdrawals from customer accounts in June. Celsius had blamed “extreme” market conditions for the decision, leaving its 1.7 million customers in the lurch.

Additionally, the company is under lawsuit from a former investment manager that worked with it for unpaid dues. The lawsuit implied that Celsius’s business model was a Ponzi scheme and that the company had dug itself into a $200 to $300 million hole that could not be explained.

Decentralized blockchain platform Zbyte raises $10 Mn

In an attempt to stay afloat, Celsius had let go of 25 per cent of its workforce, laying off 150 employees.

The Celsius market crash was triggered by the token crash of the stablecoin UST (Terra) and its fluctuating counterpart LUNA in May. Terra was in the top 10 cryptocurrencies by valuation at the time and caused an already bearish market to turn into a bloodbath over the last two months.

recently, on 13 July OneCard entered in Unicorn list with raises of over $102 Mn at $1.2 Billion valuation

Recommended for You:

BigBasket revenue crosses Rs 7,000 Cr in FY22, losses jump 4X

HDFC Bank Millennia Credit Card कैसे अप्लाई करें?

Ankush Kumar
Ankush Kumarhttps://www.marketmoney.in
Ankush Kumar is the Founder of Market Money. He is an expert in Banking and Finance. He has appeared in B.Com (Banking & Finance) From Govt. College in Lucknow.

Must Read