Crypto Lender Celsius Files for Bankruptcy After Cash Crunch

Crypto company Celsius has filed for Chapter 11 bankruptcy protection.

Celsius said it would look to stabilize its business by restructuring in a way "that maximizes value for all stakeholders."

Celsius said it has $167 million in cash on hand to support operations in the meantime.

"This is the right decision for our community and company," Alex Mashinsky, co-founder and CEO of Celsius said in a statement

"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."

The Hoboken, New Jersey-based company made headlines a month ago after freezing customer accounts, blaming "extreme market conditions."

The company has more than 100,000 creditors, which could include both customers and lending counterparties, according to the bankruptcy document.

Its largest unsecured claim is an $81 million from Caymans Island-based Pharos Fund

The filing also lists billionaire FTX CEO Sam Bankman-Fried's trading firm, Alameda Research, as a creditor with a $12 million unsecured loan.

Celsius was one of the largest players in the crypto lending space with more than $8 billion in loans to clients, and almost $12 billion in assets under management as of May.


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