Cryptocurrency lending has declined in recent months following the collapse of cryptocurrency prices and the collapse of the major TerraUSD token in May. Celsius had halted withdrawals and transfers between accounts last month, blaming extreme market conditions. State securities regulators in New Jersey, Texas and Washington had stepped in to investigate the cryptocurrency lender’s decision. In announcing that Celsius had filed for Chapter 11 protection, members of the board’s special committee said Wednesday: “Today’s filing follows Celsius’ difficult but necessary decision last month to cease withdrawals, exchanges and transfers on its platform to stabilize business and protect its customers. “Without a pause, the acceleration of withdrawals would allow some customers – those who were early adopters – to be paid in full, while others would be left behind waiting for Celsius to collect value from illiquid or longer-term asset development activities before receiving a recovery. “ The US company said it had $167 million available to provide liquidity to support certain operations during the restructuring process. It listed its estimated assets and liabilities between $1 billion and $10 billion on a consolidated basis. Celsius has not asked the authority to allow customer withdrawals at this time, the company said in a press release, adding that it had filed court motions to allow it to continue operating as normal. Customer claims will be handled through the Chapter 11 process, Celsius said. With Reuters
