Cryptocurrency platform Celsius announces bankruptcy

Cryptocurrency platform Celsius has announced its own bankruptcy, filing a petition in a New York court.

According to the statement, Celsius plans to use $ 167 million in funds to «continue certain activities» during the restructuring process. In the future, representatives of the platform hope to «return funds to customers». However, withdrawal of their own funds is currently unavailable for users of the service.

«I am confident that in the future we will rebuild the company and this period will be crucial in the history of Celsius. We will help our customers and ensure a stable future for the platform,» said Alex Mashinsky, co-founder and CEO of Celsius.

As we reported earlier, Celsius has fallen into «dark times» and it seems that only law enforcement agencies will be able to understand the cause and effect. At the end of June, it became known that the platform’s asset/equity gap is significantly different from similar credit organizations: Celsius has 19 times less assets than it needs to pay out. The company’s CEO recently tried to flee to Israel, and the platform did not believe its own lawyers for a long time. Also, a few days ago, a former Celsius contractor accused the company of defrauding customers and manipulating depositors' funds.