in New Jersey Celsius listed estimated assets and liabilities on a consolidated basis ranging from $1 billion to $10 billion, according to a lawsuit in the U.S. Bankruptcy Court for the Southern District of New York.
Cryptocurrency lenders have flourished during the Covid-19 pandemic, luring savers with high interest rates and easy access to loans rarely offered by traditional banks. However, in recent months, they have fallen after the collapse of cryptocurrency prices and the collapse of major tokens. TerraUSD in May.
Another crypto lender, Voyager, filed for bankruptcy on July 6 after suspending withdrawals and deposits.
Celsius does not currently seek permission for customer withdrawals, the company said in a press release on Wednesday, adding that it has filed a series of routine motions with the court to allow it to continue operating as normal.
The company has $167 million in cash that will provide liquidity to support certain operations in the restructuring process.
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Celsius froze withdrawals and transfers last month, citing “extreme” market conditions, leaving 1.7 million customers unable to redeem their assets. This prompted state securities regulators in New Jersey, Texas and Washington to investigate the decision.