Crypto lending firm Celsius is voluntarily filing for Chapter 11 bankruptcy weeks after its native asset plummeted by more than 99%.
According to a new press release, Celsius is filing bankruptcy to undergo a restructuring process in an attempt to stabilize the business and maximize value for stakeholders.
As stated by Celsius co-founder and CEO Alex Mashinsky,
“This is the right decision for our community and company. 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.”
The firm filed a series of motions, pending court approval, which would allow it to pay its employees normally as well as continue their benefits without any disruptions, according to the press release.
Celsius currently has $167 million in cash on hand, which they plan to use as liquid capital during the restructuring process. Part of the company’s reformation includes hiring new executives and legal experts to help it navigate the process.
Celsius’s token CEL initially collapsed in mid-June after the lending firm halted all customer transactions and withdrawals, citing extreme market volatility.
Celsius is changing hands at $0.708 at time of writing, a 17.3% drop on the day.
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