Crypto lending platform Celsius has filed for Chapter 11 bankruptcy, with its attorneys beginning to notify US state regulators on Wednesday, July 13.
The news wasreportby CNBC and citing sources, who asked to remain anonymous. Because this trial is private. They said the company plans to file Chapter 11 documents.
Celsius reports more than 100,000 creditors in the petition, with the petition stating that Pharos USD Fund SP and Pharos Fund SP are the largest unsecured creditors. Other named creditors include ICB Solutions, The Caen Group LLC, Alameda Research, B2C2 and Covario AG, among others.
Celsius said it had $167 million in cash on hand, which would provide enough liquidity to support certain operations during the debt restructuring process.
Celsius previously settled its latest DeFi debt with Compound, Aave, and Maker, reducing its $820 million initial debt to just $0.13 over the course of a month.
However, the fate of depositors who still have their assets locked in the lending platform is still unknown. Neither the company nor its CEO, Alex Mashinsky, have commented on how depositors will be refunded.
Rumors of Celsius’ bankruptcy began to spread last month. After crypto lenders were forced to halt withdrawals due to “Severe market conditions” on June 13
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