Celsius Network declared bankruptcy and filed its bankruptcy letter. Thousands of investors are still complaining about not being able to withdraw money.
As the collapse in the cryptocurrency world took longer than expected, some companies started to file the bankruptcy flag. Cryptocurrency lending firm Celsius put withdrawals on hold about a month ago. Now it turns out that the company has filed for bankruptcy.
Celsius declares bankruptcy without allowing withdrawals
Cryptocurrency loan company Celsius, which said it would not be able to take action until the cryptocurrency industry rebounds, has officially filed for bankruptcy. He said they will embark on an extensive restructuring process that will make the most of it for investors .
In a blog post shared on the company’s website, it was informed that users’ withdrawals will still be suspended. No date has been shared yet for other suspended transactions, especially withdrawals. However, it was emphasized that they will work for the success of the cryptocurrency industry.
Celsius officials announced that they are working on a new structure that will carry out the activities of the platform . Reminding that withdrawals, conversions and transfers are paused for all customers, the loan company said they had made a “difficult but necessary decision”.
In the bankruptcy filing sent to the US regulatory agency SEC, it was stated that more than 100 thousand customers will be paid between 1 and 10 billion dollars. It was underlined that customers will not be allowed to withdraw money at this time. It was also stated that the company’s existing loans will continue to serve, but will not be open to new loans.
You may be wondering what is Celsius . We can roughly say that the Celsius network serves as a bank for cryptocurrencies . It offered users the ability to withdraw, deposit, transfer or stake (cryptocurrency freeze) using cryptocurrencies.
Celsius allegedly paid some of its partners, but did not pay its own employees. While it is unclear for now when the company will allow withdrawals, it has shaken confidence in the cryptocurrency market.