Crypto Crash Casualty Celsius Files for Bankruptcy


Celsius Network has filed for bankruptcy, becoming the latest crypto crash casualty.

The US-based crypto lender said its Chapter 11 filing means it will not seek permission to let customers withdraw from their accounts but would continue other normal operations.

The Celsius token (CEL) dropped more than 40% on the news, following a brief climb to $0.95. CEL was trading at just $0.52 at 10am Hong Kong time.

Celsius had paused withdrawals and transfers between accounts last month, blaming extreme market conditions.

“Without a pause, the acceleration of withdrawals would have allowed certain customers — those who were first to act — to be paid in full,” the company said in a statement.

Others, it added, would be left behind “to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery”.

Celsius said it has $167 million in cash on hand, which will provide “ample liquidity to support certain operations” during the restructuring process.

State regulators in New Jersey, Texas and Washington are investigating the company.

The current crypto crash kicked off in May with the collapse of TerraUSD and its affiliated Luna token.

Bitcoin, the most popular crypto, is hovering at around $20,000. It has lost about 8% in value over the past month and around 57% in the year to date.


  • Reuters, with additional editing by George Russell




Crypto Lender Celsius Ran ‘Ponzi Scheme’, Lawsuit Claims

Crypto Crash Fund Three Arrows’ Founders ‘Go Missing’

US Probes Crypto Lender Voyager as Genesis Admits Losses



George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

Japan, Korea, US Agree Forex Cooperation As Yen, Won Dive

Fading hopes of a US interest rate cut anytime soon have pushed the Japanese currency…

11 hours ago

US Set to Restore China Solar Tech Tariffs After Korea Firm Plea

The solar division of Korean conglomerate Hanwha Corp, Qcells, is looking to protect a planned…

12 hours ago

Biden to Propose Tripling Tariffs on Metal Products From China

President eyes hiking tariffs amid a push for blue-collar votes on a visit to Pittsburgh,…

20 hours ago

Japanese Firms Eye Moves to the US as ‘China Illusion’ Fades

With Japanese firms now wary about investing in China, the US's economic resilience has proven…

21 hours ago

Apple Eyes Indonesia Fab as it Reduces China Reliance – AP

Apple CEO Cook also met Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Tuesday as the…

21 hours ago

IMF Tips 3.2% Global Growth, Warns China on Property Crisis

IMF chief economist says China’s economy is strained by its property crisis and warns that…

22 hours ago