Celsius has just filed for Chapter 11 bankruptcy. The entity counts on $167 million cash in hand to strengthen various operations; the entity is also dealing with some lawsuits from an investor and former employee.
Celsius Network has revealed that it had filed for Chapter 11 bankruptcy; The entity expects to fix this situation and come back with a more solid background. It has taken a few other steps to help itself deal with such a process.
Celsius Network has officially filed for Chapter 11 bankruptcy, according to what the company revealed this news on July 14. This decision has been waiting for action for a long time, after many struggles to keep the entity afloat during the market decline earlier this year.
Celsius thinks this is the best method to lead the company in a good direction while it intends to come out of bankruptcy stronger and with a more solid background.
The financial rebuild of the entity took effect in the United States Bankruptcy Court for the Southern District of New York. This event marks the end of the struggle for Celsius and follows many measures taken by the entity to keep the financial structure alive.
The Entity Opened Up About its Motivation to File for Bankruptcy
The company said that this decision happened with the sole intention of providing the best chance to bring balance to the business, consolidate a comprehensive transaction procedure that maximizes value for all stakeholders, and emerge from Chapter 11 positioned for success in the crypto environment.
Celsius said it counts on $167 million in cash to assist various operations during the financial restructuring. It has also recruited new directors to develop this process.
A New Era for Celsius Network Begins
Celsius has been one of the most famous digital assets lending networks for many years. The bankruptcy filing would become a massive change, but the network also thinks it can come back from the ashes with a more solid body.
It noted in newly published FAQs that it would set up a strategy that could restore the financial activity in the platform, which should bring relief to customers and help the entity re-gain its position as a leading network in the market.
The insolvency has generated many headlines in the entity, which has, in turn, sparked regulatory scrutiny. Celsius will be expecting that it can fix its internal flaws as it begins the next stage of its existence.
Investors and a former employee have also filed legal complaints against the company. The latter explained that Celsius was leading a Ponzi scheme, while a crypto YouTuber has also enacted a lawsuit.
Celcius said this action was the right decision for its community and company. They explained that they have an experienced team to lead Celsius through this process.
The entity is still confident that once this situation gets left behind, the company will observe it as a crucial moment, where acting with resolve and confidence helped the community and consolidated the company as a lending network with optimal services.
By: Jenson Nuñez
