Major crypto lender Celsius files for bankruptcy

U.S. crypto lender Celsius Network has filed for bankruptcy in New York, becoming the latest victim in the cryptocurrency sector of a plunge in token prices.
Bitcoin cryptocurrency
New Jersey-based Celsius froze withdrawals last month, citing extreme market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market.

In a court filing at the U.S. Bankruptcy Court for Southern District of New York, Celsius estimated its assets and liabilities as between $1 billion to $10 billion, with more than 100,000 creditors. The company has $167 million in cash on hand.

Voyager Digital, another U.S. crypto lender, also filed for bankruptcy this month after suspending withdrawals and deposits.

Vauld, a crypto lender based in Singapore, also froze withdrawals this month.

Celsius said it was not requesting authority to allow customer withdrawals, adding it had asked the court to allow it to continue operations such as paying employees.

Celsius’s move in June to freeze withdrawals prompted state securities regulators in New Jersey, Texas and Washington to launch investigations into the firms.