BREAKING: Crypto lender Celsius declares Chapter 11 bankruptcy in New York
In a statement, Celsius said it had $167 million in cash “to support certain operations during the restructuring process.”The firm declared assets between $1 billion and $10 billion, with an equal amount in estimated liabilities, according to theCelsius claimed more than 100,000 creditors in its petition. The petition names Pharos USD Fund SP and Pharos Fund SP as its largest unsecured creditor, with an unsecured claim of approximately $81 million.
In a statement, Celsius said it"has $167 million in cash on hand, which will provide ample liquidity to support certain operations during the restructuring process." The firm is being represented by Kirkland & Ellis LLP, per the petition. A total of eight Celsius-related entities are declaring bankruptcy.Founded in 2017 by Alex Mashinsky and Daniel Leon, Celsius offered retail investors attractive returns on their crypto holdings under the slogan"unbank yourself." The company, which moved its headquarters from London to New Jersey last year, had grown to manage more than $10 billion in assets and claimed more than 1.7 million users.
lining up to investigate its business practices. This week, the Vermont Department of Financial Regulation said Celsius's representations about the safety of customer funds were"untrue” and accused the company of engaging in an “unregistered securities offering” by offering cryptocurrency interest accounts to retail investors.
“This is the right decision for our community and company,” Mashinsky said in a statement. “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.”
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