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Celsius Network filed for bankruptcy a month following customers were banned from withdrawing funds. Throughout the process, the company will service existing loans, but will not issue new ones. Withdrawals from the platform are still suspended and “most account activity will be suspended until further notice.”
Celsius was only founded in 2017 but quickly became a billion dollar crypto lending business thanks to crypto traders and speculators. He had several options: you might deposit crypto into Celsius with the promise of high returns, or you might take out a cash loan secured by your crypto holdings.
There were many small investors, but also many large ones, such as the huge Canadian pension fund Caisse de dépôt et Placement du Québec, which, along with an investment firm, invested $400 million in Celsius last year, valuing the company at $3 billion.
Celsius is the third major cryptocurrency company to fail following the unstoppable fall in the value of cryptocurrencies. In the first week of July, both broker Voyager Digital and hedge fund Three Arrows Capital filed for bankruptcy.