- Celsius Network has filed for bankruptcy following a cash crunch.
- Similar to several crypto firms, the company is suffering in the bear market.
- Its first hearing will take place on July 18.
US crypto lender Celsius Network has filed for Chapter 11 bankruptcy, upon falling prey to crypto’s considerable plunge in prices.
According to a court filing in the US Bankruptcy Court for the Southern District of New York, Celsius has listed both the estimated assets and liabilities on a consolidated basis in the range between $1 billion to $10 billion.
During the pandemic, there was a sudden rise in the number of lenders; thereby, attracting depositors with high interest rates as well as easy access to loans. However, the crash in cryptocurrency prices in the recent months and collapse of TerraUSD changed everything.
According to the latest Twitter post by Celsius, its first hearing had been scheduled for the coming Monday.
Our First Day Hearing will take place on Monday. This provides an opportunity for the Court to hear from Celsius and consider next steps for the process.
— Celsius (@CelsiusNetwork) July 15, 2022
The crypto lender believes that through the hearing, the Court will listen to it and consider the upcoming steps for the process.
At the moment, Celsius is not requesting authority for customer withdrawals. The company has $167 million in cash, which is enough for liquidity to support certain operations as the restructuring process continues.
Two days back, Today NFT News reported that Celsius Network has begun financial restructuring for business stabilization. Moreover, it has appointed new directors for additional leadership and expertise.