Crypto Lender Celsius Files for Chapter 11 Bankruptcy Protection
Celsius logo

Crypto Lender Celsius Files for Chapter 11 Bankruptcy Protection

Following a turbulent month, the crypto lender Celsius has announced that it’s filed for Chapter 11 bankruptcy protection. According to CNBC, the company has more than 100,000 creditors, including individual customers. The filing also notes that the company has $167 million in cash on hand as it continues to operate.

In a statement, Celsius co-founder and CEO Alex Mashinsky said of the filing, “This is the right decision for our community and company. 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.”

Celsius first made headlines last month when it announced that it was pausing certain transactions on the platform — including withdrawals — citing extreme market conditions. As the company stated at the time, “We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible.” They added, “There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”

Prior to the pause, Celsius seemed to be on an upward trend, reporting 1.7 million customers as of last month. Furthermore, the company had originated more than $8 billion in loans and had $12 billion in assets under management. Part of the appeal of the platform for customers was the high yields on crypto loans, which were as high as 17%.

Unfortunately, Celsius isn’t the only crypto-centric firm to fall on hard times as of late. Last week, Voyager Digital also filed for Chapter 11 bankruptcy protection. Meanwhile, Gemini founders Cameron and Tyler Winklevoss disclosed last month that the company would be laying off approximately 10% of its staff. Like others, the Winklevosses referred to the “Crypto winter” as the reason behind the move.

Ultimately, while Celsius may be confident about their prospects of exiting Chapter 11 in a stronger position, others aren’t as optimistic. Of course, crypto volatility does work both ways, with potential value increases likely benefiting the firm. On the other hand, the trust many customers may have had in Celsius has undoubtedly been impacted by the continued pause on withdrawals. In any case, the saga of Celsius is sure to be an interesting one as it continues to be written.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox
Travelers with two Best Western Credit Cards

Best Western Debuts Two New Rewards Credit Cards

After pausing applications for their previous rewards card, the hotel chain Best Western has unveiled a new pair of rewards credit cards with a new issuer. About the Best Western cards: Best Western is partnering with First Bank & Trust and Mercury Financial to introduce two new co-branded credit cards. First up is the no-annual-fee Best Western Rewards Visa Signature Card. With this card, customers can 4x points on Best...
Marriott Bonvoy card and a woman on vacation

Marriott Bonvoy Bold Card Launches Travel Contest

Chase and Marriott Bonoy have unveiled a special contest while continuing to offer its best-ever welcome bonus. About the welcome bonus and Bold Chat Court Contest: Marriott Bonvoy and Chase have launched a special opportunity called the Bold Chat Court contest. As part of this contest, 10 lucky travelers will be awarded 500,000 Marriott Bonvoy points (for a total of 5 million) as well as $5,000. For this contest, the...
Bilt and All Reward logos

Bilt Adds 2 New Transfer Partners Including First 3:2 Transfer Rate

Bilt is once again expanding its travel transfer rewards program — and is even breaking the mold with one new partner. About the new additions to Bilt: This week, Bilt launched partnerships with two more travel brands: TAP Air Portugal and Accor. As a result, Bilt members will now be able to transfer their points to Miles&Go and ALL Reward, respectively. In total, Bilt now has 18 transfer partners including 13...
Fioney Top 10 Must-Read Personal Finance Articles Septemeber 2024

Top 10 Personal Finance Articles of the Month — September 2024

Welcome to Fioney's look at the top 10 personal finance articles of the month. On the first Friday of each new month, we look back at some of our favorite posts published in the weeks prior and highlight them right here. This includes a mix of sites that have become staples of our lists as well as many first-timers. To start things off this month, we'll look at some articles...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...