Celsius To File For Bankruptcy

According to CNBC, embattled crypto company Celsius is in the process of filing for Chapter 11 bankruptcy. From the report: The company's lawyers were notifying individual U.S. state regulators as of Wednesday evening, according to the source, who asked not to be named because the proceedings were private. Celsius plans to file the paperwork "imminently," the person said. The Hoboken, New Jersey-based company made headlines a month ago after freezing customer accounts, blaming "extreme market conditions." The company was one of the largest players in the crypto lending space with more than $8 billion in loans to clients, and almost $12 billion in assets under management as of May. Celsius said it had 1.7 million customers as of June and was competing with its interest-bearing accounts and yields as high as 17%. The firm would lend customers' crypto out to counterparties willing to pay a sky-high interest rate to borrow it. Celsius would then split some of that revenue with users. But the structure came crashing down amid a liquidity crunch in the industry. "Unfortunately, this was expected. It was anticipated. It does not, however, stop our investigations. We will continue investigating the company and working to protect its clients, even through its insolvency," Joseph Rotunda, director of enforcement at the Texas State Securities Board, said of the Celsius bankruptcy filing.

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