SA国际传媒

Another week, another crypto lender files for bankruptcy.

Embattled lender filed for Chapter 11 protection Thursday morning in an effort to 鈥渟tabilize its business and consummate a comprehensive restructuring transaction,鈥� the company said in a .

Last week, also for bankruptcy. In that filing, the company specifically noted that crypto hedge fund 鈥攐r 3AC鈥攈ad defaulted on a loan. Singapore-based 3AC collapsed after the downturn in digital currencies left it unable to meet obligations and filed for Chapter 15 bankruptcy itself on July 1. .

Celsius鈥� drama has lasted more than a month. It was in early June when the Hoboken, New Jersey-based company suspended withdrawals and transfers due to 鈥渆xtreme鈥� market conditions.

In its , Celsius estimated both its assets and liabilities as between $1 billion and $10 billion and said it has more than 100,000 creditors.

What happened?

Crypto lenders have found themselves vulnerable after offering high-yield crypto loans as cryptocurrency prices have crashed this year. Values for the two largest cryptocurrencies鈥擝itcoin and Ether鈥攁re down more than 70% from November highs.

鈥淭his is the right decision for our community and company,鈥� said co-founder and CEO in the release. 鈥淲e 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.鈥�

Celsius says it currently has $167 million in cash on hand鈥攚hich will 鈥減rovide liquidity to support certain operations during the restructuring process.鈥�

According to SA国际传媒, Celsius has raised more than $860 million in funding.

Further reading:

• Mergers & Money: As Summer Approaches, Emerging Crypto Winter Gets Darker
• Crypto Market Tumult Drops Bitcoin To 18-Month Low
• Crypto Bear Market Here A While

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