Crypto lending platform Celsius files for bankruptcy protection

A company statement confirmed that Celsius had “$167 million in cash on hand”

The beleaguered cryptocurrency lending platform, Celsius Network, which last month froze all user withdrawals and transfers, has now filed for bankruptcy protection.

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The company announced it started financial restructuring and had filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code, in New York.

A company statement confirmed that Celsius had “$167 million in cash on hand” to carry out some operations during the restructuring phase. 

However, Celsius said it was not currently addressing the matter of frozen customer withdrawals, but rather following the Chapter 11 process.

“We have a strong and experienced team in place to lead Celsius through this process. 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,” said Celsius co-Founder and CEO Alex Mashinsky in an official release.

The executive stressed this was the “right decision” for the community and the company.