Troubled cryptocurrency lender Celsius announced that it has filed for Chapter 11 <a href="https://www.cryptoknowmics.com/news/voyager-digital-becomes-latest-crypto-firm-to-file-for-bankruptcy/" target="_blank" rel="noopener">bankruptcy</a> protection in New York.
<h2 class="mb-2 font-canela-black text-3.5xl md:text-4.5xl lg:text-5xl leading-none md:leading-11 lg:leading-none text-neutral-800">Celsius Files For Bankruptcy</h2>
In a Wednesday statement, Celsius filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York to start a financial restructuring process. The company stated that it has $167 million in cash to support certain operations during the restructuring process.

Celsius last month stopped <a href="https://www.cryptoknowmics.com/news/crypto-lender-celsius-halts-all-withdrawals-swaps-and-transfers/" target="_blank" rel="noopener">withdrawals</a>, swaps, and transfers between accounts, citing the need to "stabilize its business and protect its customers," according to its bankruptcy filing.

Commenting on the move, <a href="https://twitter.com/Mashinsky" target="_blank" rel="nofollow noopener">Alex Mashinsky</a>, Co-Founder &amp; CEO, Celsius, said:
<blockquote><em>"This is the right decision for our community and company. We have a strong and experienced team in place to lead Celsius through this process. 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."</em></blockquote>
https://twitter.com/CelsiusNetwork/status/1547375324622618624
<h2>US State Regulator Called Celsius 'Deeply Insolvent'</h2>
The decision by Celsius to file for bankruptcy came on the same day Vermont's regulator announced that it had launched an investigation into whether the company violated state security laws.

The state regulator even went ahead to say that it "believes Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors."

Crypto Lender Celsius Files For Chapter 11 Bankruptcy In New York

Troubled cryptocurrency lender Celsius announced that it has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court, New York.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Crypto Lender Celsius Files For Chapter 11 Bankruptcy In New York

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