{"id":64360,"date":"2022-07-14T08:05:01","date_gmt":"2022-07-14T05:05:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=64360"},"modified":"2025-09-06T14:03:16","modified_gmt":"2025-09-06T11:03:16","slug":"celsius-files-for-bankruptcy-protection","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/celsius-files-for-bankruptcy-protection\/","title":{"rendered":"Celsius Files for Bankruptcy Protection"},"content":{"rendered":"<p>The crypto lending platform Celsius Network and some of its subsidiaries filed for bankruptcy in a New York court.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Moments ago, <a href=\"https:\/\/twitter.com\/CelsiusNetwork?ref_src=twsrc%5Etfw\">@CelsiusNetwork<\/a> filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring. <a href=\"https:\/\/t.co\/vf5wsT6TMp\">https:\/\/t.co\/vf5wsT6TMp<\/a><\/p>\n<p>\u2014 Celsius (@CelsiusNetwork) <a href=\"https:\/\/twitter.com\/CelsiusNetwork\/status\/1547375324622618624?ref_src=twsrc%5Etfw\">July 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The filing was made under Chapter 11 of the United States Bankruptcy Code. The company hopes that the restructuring will maximise value for all stakeholders.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Today&#8217;s petition follows Celsius&#8217;s difficult but necessary decision last month <a href=\"https:\/\/u1f987.com\/en\/news\/what-happened-to-celsius-cel\">to suspend<\/a> withdrawals, swaps and transfers on the platform, to stabilise its business and protect customers,&#8221; the company said.<\/p>\n<\/blockquote>\n<p>Celsius <a href=\"https:\/\/www.businesswire.com\/news\/home\/20220713005911\/en\/Celsius-Network-Initiates-Financial-Restructuring-to-Stabilize-Business-and-Maximize-Value-for-All-Stakeholders\">said<\/a> it has $167 million in cash to provide liquidity to support certain operations during the restructuring.<\/p>\n<p>The company emphasised that since the filing, most platform operations have been paused, but it will continue to operate.<\/p>\n<p>On 13 July, Celsius <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-repaid-its-makerdao-loan-and-withdrew-23-962-wbtc-in-collateral\">repaid<\/a> the loan in the DeFi protocol MakerDAO and withdrew a total of 23,962 WBTC collateral worth about $490 million.<\/p>\n<p>Lawyers described the company&#8217;s <a href=\"https:\/\/u1f987.com\/en\/news\/law-professor-says-celsius-bankruptcy-is-almost-inevitable\">almost inevitable<\/a> bankruptcy, and the Vermont Department of Financial Regulation said of its <a href=\"https:\/\/u1f987.com\/en\/news\/vermont-regulator-labels-celsius-in-extreme-insolvency\">extreme insolvency<\/a>. It was reported that existing investors in the platform <a href=\"https:\/\/u1f987.com\/en\/news\/leading-investors-reluctant-to-bail-out-celsius-journalists-reveal\">agreed to restructuring<\/a>, but would refrain from new investments in the project.<\/p>\n<p>Prior to Celsius, bankruptcy petitions were also filed by the hedge fund Three Arrows Capital and the cryptocurrency broker <a href=\"https:\/\/u1f987.com\/en\/news\/voyager-digital-files-for-chapter-11-bankruptcy\">Voyager Digital<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto lending platform Celsius Network and some of its subsidiaries filed for bankruptcy in a New York court.<\/p>\n","protected":false},"author":1,"featured_media":64361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1348],"class_list":["post-64360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-celsius-network"],"aioseo_notices":[],"amp_enabled":true,"views":"29","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=64360"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64360\/revisions"}],"predecessor-version":[{"id":64362,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/64360\/revisions\/64362"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/64361"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=64360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=64360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=64360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}