Bitcoin (BTC) and cryptocurrency lending and investment company Celsius has filed for bankruptcy.
This was reported by the company founded by the Ukrainian-American, Alex Mashinsky, in a Press release.
According to the businessman, it is “the right decision” for Celsius. He assures that, in the future, they will remember these events “as a decisive moment in which acting with determination and confidence served the community and strengthened the future of the company.”
Celsius filed for bankruptcy taking advantage of the Chapter 11 of the United States Bankruptcy Law, which allows companies with financial problems to reorganize with legal protection. Thus, the bankrupt company can retain control over operations, albeit under court supervision.
As CriptoNoticias extensively reported, Celsius users have their cryptocurrencies locked on the platform since a month ago. The company argues that it cannot return them due to a liquidity crisis.
Hereinfollowing, Celsius will operate with new directors. They are David Barse and Alan Carr, both with experience in investment companies. They will have legal advice from Kirkland & Ellis LLP, financial advice from Centerview Partners and restructuring advice from Alvarez & Marsal.
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The company has USD 167 million in available cash, which will give them liquidity for the restructuring process. Still, as stated in the press release, “Celsius is not requesting authority to allow withdrawals by its customers at this time.”
