About four months after commencing voluntary Chapter 11 bankruptcy proceedings, crypto lender Celsius Network is yet to execute the much-talked-about restructuring plan. The troubled lender has now filed a motion requesting the court’s approval to extend the deadline for the submission of its reorganization plan. Celsius Files for Extension of Exclusivity Period Celsius announced the...Read More
The move is the last in a series of resignations across multiple crypto platforms struggling to stay afloat. Last Week, Alex Mashinsky formally resigned from his position as CEO of the now-bankrupt crypto asset management firm Celsius. His resignation was taken into consideration effective immediately, although he remained director of the company, stating that the...Read More
Change is in the air as the crypto space continues to see top executives step down from their roles amid the market crisis that stemmed from the Terra Luna fiasco and the Federal Reserve’s continuous interest rate hike, which negatively impacted the global financial market. The change in crypto-related executive leadership started with Twitter co-founder...Read More
Two weeks ago, Celsius filed a motion asking for approval to sell stablecoins currently in its possession. At the time, a preliminary investigation did not find any reasons to deny the request outright – even though the cash generated by the sale would be used to fund Celsius’ operations, not pay back creditors. Further deliberation...Read More
Alex Mashinsky, CEO of embattled cryptocurrency lending platform Celsius, is resigning from his executive position. Nevertheless, he states he is willing to help the company during its restructuring process. In an announcement on Tuesday (September 27, 2022), Mashinsky tendered his resignation letter to the Special Committee of the Board of Directors of Celsius Network Limited....Read More
Celsius has been grilled by state watchdogs for alleged “financial mismanagements.” In a recent turn of events, Washington’s Assistant Attorney General Stephen Manning filed a motion on September 22nd to Judge Martin Glenn to represent the Washington State Department of Financial Institutions. The filing read, “I certify that I am a member in good standing...Read More
As Celsius’ bankruptcy case drags on, more and more evidence of financial misconduct – or at the very least, mismanagement – seems to be coming to light. Prior reports had already indicated that the company’s real financial situation is far direr than originally stated. Celsius Insolvent Since 2019, Had Never Profitable Enough In the most...Read More
Several weeks after filing for bankruptcy protection, the troubled cryptocurrency lender, Celsius Network, is seeking court approval to allow a small group of customers to withdraw their digital assets. In a Thursday filing with the United States Bankruptcy Court for the Southern District of New York, the crypto lender motioned for customers’ assets held in...Read More
Celsius Network’s financial projection shows that it is likely to run out of cash by October, but the lending firm witnessed a breakthrough. A New York judge has approved Celsius’ request to sell Bitcoin that it mines as it undergoes bankruptcy. While the process is expected to reinstate financial stability for the beleaguered platform, Chief...Read More
Celsius Network’s latest court filings depicted a grim forecast for the crippled crypto lender. The documents revealed that the actual debt currently stands at $2.85 billion, as against their bankruptcy filing claims of a $1.2 billion deficit. The firm is expected to run out of cash by October as per the filing with the United...Read More
California’s Department of Financial Protection and Innovation (DFPI) has now issued a desist and refrain order against Celsius. As such, the bankrupt crypto lender will not be to continue the sale and marketing of securities in the state of California. The development comes a month after the DFPI slapped two cease and desist orders to...Read More
Less than 24 hours after the Southeast Asia-based cryptocurrency exchange Zipmex paused customer withdrawals citing volatile market conditions, the company announced plans to resume full operations. Zipmex Resumes Withdrawals In a tweet on Thursday, Zipmex noted that deposits and withdrawals are now open to users in its trade wallet. However, ZipUp accounts will remain disabled...Read More
Former Celsius senior executives have revealed the crypto lending company had been struggling internally for years before going bankrupt, contrary to the firm’s claims that its problems stemmed from the recent market crash. Poor Risk Management and Disorganization According to the employees, Celsius was disorganized and lacked proper risk management. Internal documents reviewed by CNBC...Read More
After about a month of hemming and hawing, Celsius Network recently filed for Chapter 11 bankruptcy protection. In the month leading up to the pretense dropping, customers’ access to their funds was cut off while the lender looked for ways to stay afloat. Now, following the first bankruptcy hearing on the 18th of July, Celsius’...Read More
Kathleen Breitman, the co-founder of decentralized layer 1 blockchain Tezos, said the bankruptcy filing of troubled crypto lender Celsius Network is not surprising because such business models are sustainable in the long run. Breitman: Celsius’ Bankruptcy Unsurprising Recall that Celsius filed for voluntary Chapter 11 bankruptcy protection exactly a month after suspending users’ withdrawals and...Read More
Crypto lender Celsius filed for Chapter 11 bankruptcy earlier this week. The filing, however, revealed a deficit of $1.2 billion on its balance sheet, one of the reasons why FTX walked away from a potential acquisition deal. According to the document, the company currently holds $4.3 billion in assets against a whopping $5.5 billion in...Read More
Celsius Network announced today that it initiated a voluntary Chapter 11 bankruptcy protection with the Southern District of New York. Consequently, Celsius’ native token recorded a dip of over 50% at one point and dumped to a monthly low before recovering some ground. According to Celsius, the need for bankruptcy protection will help it in...Read More
Another US state just launched an investigation into the firm. The US state of Vermont’s Department of Financial Regulation (DFR) has leveled serious allegations against the troubled crypto lender. Vermont Watchdog’s Statement on Celsius In a recent statement, the DFR said it believes Celsius is “deeply insolvent” and the firm does not have the assets...Read More
Cryptocurrency lender Celsius is trying to overcome the hypothermia caused by the crypto winter and position itself again as a reliable service on the market, gaining its credibility once again. And to achieve this goal, it’s turning to legal experts. According to the Wall Street Journal, Celsius hired the law firm Kirkland & Ellis LLP...Read More
Tether, the company behind USDT, the largest stablecoin by market capitalization, revealed that it liquidated Celsius’s position without risk to its reserves. In a press release on Friday (July 8, 2022), Tether stated that beleaguered lending platform Celsius took an overcollateralized loan from the company, denominated in bitcoin (BTC). The stablecoin issuer said it has...Read More
In the wake of its solvency crisis, new details have emerged about Celsius using investor funds to conduct high-risk leveraged crypto trading strategies. Losing Client’s Funds A new report by blockchain analytics firm Arkham Intelligence stated that Celsius entrusted corporate funds of around $530 million. Failing to hedge the risk resulted in a loss of...Read More
Struggling cryptocurrency lending company Celsius has been accused by staking software firm KeyFi, of fraud, mismanagement of customers’ deposits, and failure to honor an agreement between both parties in a lawsuit filed in New York. Lawsuit Accuses Celsius of Operating a Ponzi Scheme Jason Stone, the founder of KeyFi, alleged that Celsius used customers’ funds...Read More
After paying back an additional $41.2 million in Dai to decentralized lending platform Maker, Celsius Network now can reclaim approximately $450 million worth of BTC locked up as collateral on the protocol. Celsius has been actively paying back its loans to Maker in the past few days in a bid to drastically lower the liquidation...Read More
Celsius Network has repaid yet another $34.43 million of its debt to MakerDAO as the former blue-chip company tries to avert a total collapse. This marks the second such repayment in less than 24 hours. Vault 25977, reportedly owned by Celsius, showed a series of payments starting June 14. Its liquidation has dropped to $2,722. Earlier...Read More
CoinLoan – a company that offers crypto-backed loans and interest-earning accounts – said it will balance the flow of funds on its platform by reducing the account withdrawal limits. The firm assured that the amendment is temporary as each user would be able to withdraw up to $5,000 per 24-hour rolling period. CoinLoan’s Steps Amidst...Read More
According to a recent report, Celsius Network has fired about a quarter of its employees. This comes just days after the company issued a statement, reassuring once again that it’s working around the clock to resume withdrawals and fix its liquidity issues. Citing a note that it had obtained over the weekend, the Israeli media...Read More
Reports emerged yesterday claiming that Alex Mashinsky – the CEO of the struggling cryptocurrency lender – attempted to leave the country but was stopped by local authorities. However, the Celsius team refuted these allegations, reaffirming that they continue to work around the clock to find a solution to the recent issues. CryptoPotato reported the suspicious...Read More
If the situation with Celsius worsens any further and the company has to file for bankruptcy, Goldman wants to be ready to buy up crypto assets at a discount. As such, the Wall Street behemoth aims to raise $2 billion, reports say. CryptoPotato reported the drama that unfolded with Celsius earlier this month when the...Read More
A week after halting withdrawals, among all other services, the team behind Celsius has suspended some of its online engagement programs, including AMAs. At the same time, the project promised to be working with regulators to find a solution for the ongoing issues. The latest update shared by Celsius reads that the team’s objective has...Read More
Amid the challenges plaguing the cryptocurrency lending firm Celsius Network, there are reports that investors may not provide more funds to bail the platform out of the troubled waters. No Investor Bail Out for Celsius According to the Wall Street Journal on Thursday (June 16, 2022), anonymous sources revealed that Caisse de dépôt et placement...Read More
