Celsius Network a cryptocurrency lender has filed for bankruptcy. The value of the cryptocurrency market has fallen steadily over the last few months. The value of some of the most well-known digital world currencies has decreased by as much as 70%.
Although this market’s price action is a well-known character, the daily major drop in prices is enough to cause unrest for many users. The sad news is that ° c Network is the newest company to seek Chapter 11 bankruptcy protection.
According to the statement, Celsius Network’s total assets are likely to be in the $1 billion to $10 billion range. Each of the top five claims is worth between $20 million and $80 million. Prior to last year’s sell-off. Fortune valued the company at roughly $3.25 billion. I was in charge of managing about $24 billion in assets.
Before it halted deposits, this was said to have fallen to about $12 billion. But the bankruptcy petition suggests it now has less.
Celsius Network a cryptocurrency lender has filed for bankruptcy. The cryptocurrency loan firm has stopped all withdrawals and account transfers over the past month. Leaving its 1.7 million customers unable to get their money back. Extreme market conditions, according to the corporation. Were the driving force behind this choice.
The decision to file for Chapter 11 bankruptcy was made. The company stated, “to stabilize its business and protect its clients. Without a break, the acceleration of withdrawals would have allowed certain customers. Those who moved first—to get paid in full. Leaving others behind to wait for Celsius to reap the benefits of less liquid.
However, Celsius has not yet made a request to permit customer withdrawals. The business said in a news statement that it has submitted to the court a number of typical motions.
Celsius Network isn’t the first cryptocurrency lender to close up shop.
Voyager Digital Ltd. did the same thing earlier in June. Also, Voyager Digital apparently stopped allowing users to make money transfers. In contrast to the preceding year, 2022 has been a very difficult year for the cryptocurrency market because of the collapse in cryptocurrency prices.
Many cryptocurrency loan businesses had a boom in business in 2020, but many of them have swiftly collapsed as a result of the collapse of a significant token that has been reliable.