Crypto lender Celsius files for bankruptcy

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Crypto lender Celsius Network said on Wednesday it has filed for bankruptcy, becoming the latest victim of a dramatic plunge in prices that has shaken the cryptocurrency sector.

The U.S. company said it has $167 million in cash on hand, which will provide liquidity to support certain operations during the restructuring process.

Celsius is not requesting authority to allow customer withdrawals at this time, the company said in a press release, adding that it has filed a series of customary motions with court to allow it to continue operations in the normal course.

Crypto lending has tumbled in the recent months following a crash in cryptocurrency prices and the collapse of major token TerraUSD in May.

Celsius had paused 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 crypto lender’s decision.

(Reporting by Maria Ponnezhath in Bengaluru; Editing by Sherry Jacob-Phillips)

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