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- Celsius in debt of users $ 4.72 Billion and have only $1.19 Billion left in the Balance sheet.
- Kirkland and Ellis LLP, the famous law firm, is hired by Celsius for legal formalities.
Celsius Network is a platform that offers the service of swapping, buying, selling, and managing assets on a single interface. Celsius network was founded in 2017 by Alex Mashinshky.
Celsius Network mentioned that the major amount of liabilities pending on the firm includes a big portion of their customers’ debt of $4.72 billion. The amount left with the firm is $1.75 billion.
Reports of July 13 (Wednesday), 2022, Celsius network has only $4.31 billion reserved assets left, and the liabilities amount to around $5.5 billion.
According to reports, Celsius Network filed for bankruptcy the following week under Chapter 11 of the United States of America’s bankruptcy laws. (Chapter 11 of Bankruptcy is also known as reorganization bankruptcy).
According to(DFR) Vermont’s Department of financial and regulation on Tuesday, Celsius network is facing a “fund lack” and is meeting “Deep insolvency” and did not have the sufficient amount to pay to their creditors and account holders.
Celsius network CEO (Chief executive officer) Alex Mashinshky mentioned in his statement while talking to the media in June 2022 that filing bankruptcy is the right decision to avoid unwanted problems.
In the second half of June 2022, FTX(Bahamian crypto exchange) canceled a deal with the celsius network after Knowing about a gap in the Lender’s balance sheet amounting to $2 billion.
On June 13 (Monday), 2022, Celsius Network paused all sorts of services offered, including Transactions of buying and selling cryptocurrencies. However, News about halting services was given through the official Twitter account of the celsius network.
On June 14, 2022, after halting transactions and freezing accounts, Alex Mashinsky, CEO of Celsius Network, said that rumors are being created every day but don’t have to believe them and refuse about the Insolvency of Celsius Network.
Celsius network quoted in their statement that “extreme market conditions” is the reason for suspending withdrawals and other services. Company website sources claim that the firm had under management $12 billion in assets in May 2022.
On June 13 (Monday) 2022, Celsius pronounced that it would delay it to fix liquidity and movements.
Conclusion
Celsius network was a leading firm a few months ago, but in the last three months, the firm has been facing a dark time, and now Celsius filed for bankruptcy under Chapter 11 of Bankruptcy Kirkland and Ellis LLP, the famous law firm, is hired by Celsius for legal formalities.Some market researchers and analysts believed that the market downtrend and bitcoin and other cryptocurrencies are responsible for the bankruptcy of Celsius Network and other firms.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
