Cryptocurrency platform Celsius files for bankruptcy

Celsius cryptocurrency platform files for bankruptcy

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The Celsius Network cryptocurrency platform, which received an investment of nearly $200 million from the Caisse de depot et placement du Québec (CDPQ), had to file for bankruptcy, nearly a month after freezing the assets of its 2 million members.

Celsius said in a statement on Wednesday that it had filed under Chapter 11 of the States Bankruptcy Code United States, in court for the Southern District of New York.

This decision was made in order to “stabilize its business and achieve a comprehensive restructuring operation that maximizes value for all stakeholders”.

The London cryptobank is not at its first problems, since it had to freeze the assets of more than $12 billion of its members on June 12, by suspending all withdrawals, exchanges and transfers.

“Without a pause, accelerated withdrawals would have allowed some customers—those who were the first to act—to be paid in full while leaving others behind to wait for Celsius to reap the value of deployment activities. illiquid or longer-lived assets before receiving a recovery,” said the members of the special committee of the board of directors.

The company said it has cash of 167 million USD , which “will provide sufficient liquidity to support certain operations during the restructuring process.”

Celsius was promising returns of more than 18% to clients who were willing to lend their cryptocurrencies, according to Bloomberg. These coins were then entrusted to institutional investors, but Celsius also participated in decentralized finance applications.

In the last month, the platform had also repaid all of its debt of more than 900 million $ USD in the Aave, Compound and MakerDAO applications, the media added.

Recall that Le Journal had learned last October that Celsius was monitored by the Autorité des marchés financiers .