Celsius Bankruptcy

Celsius Network LLC, along with seven of its affiliates (collectively, Celsius), operate one of the largest cryptocurrency financial platforms in the industry.

What Happened?

This platform allowed Celsius’ users the opportunity not only to transfer and store their cryptocurrency, but also to earn interest on deposited cryptocurrency and take out loans using their cryptocurrency as collateral. Celsius launched its platform in 2018 and quickly grew; on the date Celsius filed for chapter 11 relief, its platform had 1.7 million registered users and approximately $6 billion in assets. According to Celsius, its bankruptcy filing stemmed from the collapse of cryptocurrency trading prices during the crypto winter. In addition to the collapse in price, waves of negative media commentary regarding Celsius and the cryptocurrency industry, in general, drove users to withdraw their cryptocurrency from Celsius in large amounts and at a rapid pace, forcing Celsius to freeze user withdrawals in June 2022. Celsius has yet to file a plan of reorganization, and it remains to be seen whether Celsius will identify a buyer willing to purchase substantially of Celsius’ assets.


Petitions for Debtor-Affiliates