Cryptocurrency lending company Celsius Network, which recently laid off 150 employees, has now filed for bankruptcy in the US amid tough market conditions.
The platform said it has initiated voluntary Chapter 11 bankruptcy proceedings to stabilize its business and provide an opportunity to complete a comprehensive restructuring transaction that maximizes value for all stakeholders.
Celsius Network said late Wednesday that it had $167 million in cash on hand, providing enough liquidity to support some operations during the restructuring process. The platform, which paused all withdrawals last month, was last valued at $3.25 billion.
Alex Mashinsky, co-founder and CEO of Celsius, said it was the right decision for his community and company. “When we look back at Celsius Network crypto company’s history, we see this as a decisive moment where acting with determination and confidence will serve the community and strengthen the company’s future,” Alex Mashinsky said.
Meanwhile, the founder of another bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) has disappeared and authorities charged with liquidating the company are searching for his whereabouts.
The mega fund, founded by Credit Suisse traders Zhu Su and Kyle Davis, once managed approximately $10 billion in assets. A Singapore-based company Three Arrows Capital filed for bankruptcy in the US starting this month to protect its assets from creditors.
The bankruptcy comes as popular crypto tokens such as Bitcoin and Ethereum are down nearly 70 percent from their record highs amid the economic downturn. 3AC defaulted on more than $650 million in loans provided by crypto broker Voyager Digital, which also filed for bankruptcy.
Operating with the entire community and all clients in mind, we continue to take steps to preserve and protect assets and explore the options available to us. Our latest blog here https://t.co/ckIDi2O0Dc— Celsius (@CelsiusNetwork) June 30, 2022