Now crypto lending platform Celsius Network files for bankruptcy
The platform says that they initiate the bankruptcy process of chapter 11 to provide an opportunity to stabilize their business and complete comprehensive restructuring transactions that maximize value for all stakeholders.Celsius said on Wednesday night that they had $ 167 million in cash, which would provide sufficient liquidity to support certain operations during the restructuring process.
The platform, which last month stopped all withdrawals, was last worth $ 3.25 billion.“Without a pause, the acceleration of withdrawals will allow certain customers to first act full while leaving others to wait for Celsius to harvest the value of the non-liquid or long-term distribution of assets before they receive recovery,” said the company.
Alex Mashinsky, one of the founders and CEOs, Celsius, said that this was the right decision for his community and company.“I am sure that when we look back at the history of Celsius, we will see this as a decisive moment, where acting with determination and confidence to serve the community and strengthen the future of the company,” he said.
Meanwhile, other founders of the Cryptocurrency Hedge Fund which went bankrupt three capital arrows (3AC) had disappeared and officials assigned to liquidate the company were looking for their whereabouts.The Mega Fund, which was founded by Credit Suisse traders Zhu Su and Kyle Davies, had managed around $ 10 billion in assets.
3AC based in Singapore proposed bankruptcy in the US earlier this month to protect his assets from creditors.Bankruptcy comes as popular crypto tokens such as Bitcoin and Ethereum which were removed nearly 70 percent of the highest record amid the economic destruction.3AC Default with a loan of more than $ 650 million provided by Crypto Broker Voyager Digital, which has also submitted bankruptcy.
