AFTER A TROUBLING FEW MONTHS, CELSIUS HAS OFFICIALLY FILED FOR BANKRUPTCY!

Lawyers for crypto lending platform Celsius have formally informed regulators that the company is filing for Chapter 11 bankruptcy protection after weeks of speculation and rumors.

In a news release published late on Wednesday, Celsius Co-Founder & CEO Alex Mashinsky said, “This is the right choice for our community and organization.” “To guide Celsius through this procedure, we have a capable and knowledgeable staff.

According to Celsius, the filing will allow it to stabilize its operations and complete a thorough restructure that maximizes value for all stakeholders.

Following the press release, Celsius and a few of its subsidiaries submitted “voluntary petitions for reorganization under Chapter 11” to the Southern District of New York’s bankruptcy court. However, there is “ample liquidity with $167 million in cash to maintain operations,” according to the corporation.

In June, Celsius halted all customer withdrawals and swaps, citing liquidity challenges, which prompted authorities from Alabama, Kentucky, New Jersey, Texas, and Washington to launch investigations.

The following month was devoted to repaying loans and other debts totaling more than $1 billion by Celsius.

The crypto company is “deeply insolvent” and “lacks the assets and liquidity to honor its obligations to account holders and other creditors,” according to a press release issued by the Vermont Department of Financial Regulation yesterday. Which advised Celsius investors to proceed “with caution.”

In Vermont, Celsius is not authorized to conduct business. The state authority also cautioned investors to watch out for sites that promote shorting the CEL coin and potential scams.

The CEO of KeyFi, Inc., Jason Stone, filed a lawsuit against Celsius last week. Stone claims in the case that Celsius used client money to “manipulate crypto asset markets, had failed to implement fundamental accounting controls which risked those same deposits, and had failed to deliver through on commitments.”

According to a story published on Sunday by the Wall Street Journal, Celsius recruited attorneys from Kirkland & Ellis LLP to supervise the company’s restructuring preparations. Celsius today acknowledged the report in a release.

A brutal crypto winter has already claimed Voyager Digital and Three Arrows Capital, and the news of Celsius’ bankruptcy filing is the latest victim.