HomeAltcoinCelsius Network has declared bankruptcy, owing $10 billion.

Celsius Network has declared bankruptcy, owing $10 billion.

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Until recently, investors who believed in Celsius Network’s business strategy hoped that the company would reopen. It had to be halted last month.

That hope was shattered today, when the corporation filed for insolvency in a US court. It demonstrates that the obligations on a consolidated basis vary from one to ten billion dollars, with over 100,000 creditors.

The remaining liquidities, totaling 167 million dollars, must be used for the restructuring process. According to management remarks, the reorganization is meant to “maximize value for all shareholders.” 

Customers of the crypto-credit website had invested more than 20 billion dollars in the meantime, since they were occasionally remunerated by up to 18 percent. However, with the collapse of the cryptocurrency market and Terra, the dollar worth of crypto-assets owned has evaporated. As a result, the firm was eventually unable to satisfy its clients’ increasing payment expectations.

Alex Machinsky, CEO of Celsius, stated:

“This is the right decision for our community and our company. I am confident that … we will look back on this as a founding moment when our determined and confident action both served the community and strengthened the future of the company.” 

In recent weeks, crypto exchange FTX has expressed interest in a Celsius comeback. However, once a $2 billion funding shortage was discovered, negotiations came to an abrupt end.

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