Cryptocurrency investment platform Celsius declared on Wednesday that it had filed for bankruptcy in the US, a month after it stopped the withdrawals from its platform, in the recent sign of an industry in turmoil.
Through its statement, Celsius, which canceled the withdrawals in mid-June, said it was trying to restructure in a way that would maximize the value for all stakeholders and said it possessed “$167 million of cash available to meet urgent needs in the meantime.”
Without the ceasing of withdrawals, “the acceleration … would have allowed certain customers — those who were first to act — to be paid in full while leaving others behind to wait,” the separation of the Celsius board of directors was quoted in the statement as saying.
In the US, Chapter 11 enables a company that is incapable of paying its debts to restructure away from its creditors while proceeding with its current operations.
“This is the right decision for our community and company,” announced Alex Mashinsky, co-founder and CEO of Celsius.
“I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”
Cryptocurrency bitcoin has sacrificed more than half its value since the start of the year and is presently trading at just over $20,000. It was worth approximately $69,000 at its peak in November.