Cryptocurrency platform Celsius refuses to declare bankruptcy

Celsius Network, a cryptocurrency company that provides virtual loans, refused to heed the recommendations of its lawyers and declare bankruptcy. The company is counting on the support of its investors.

According to Celsius' management, many small investors are against the company’s bankruptcy because of the risk of losing their own money. Therefore, users were asked to support Celsius by enabling the «HODL» mode in their account (it allows them to temporarily disable outgoing transactions from their Celsius account). After activating HODL, clients cannot withdraw or send funds. And after deactivation, it is necessary to wait 24 hours before transaction capabilities are restored.

Celsius, which raised $ 750 million in investment at the end of last year, is an important player in the cryptocurrency lending space. If it declares bankruptcy, all cryptocurrency assets of its clients will be converted into dollars at the current market price, so depositors may lose a huge part of their wealth.

Cryptocurrency experts are of the opinion that such actions of the company are the «last efforts before the collapse» and that there will be no positive changes. Thus, on June 13, Celsius temporarily blocked the possibility of withdrawing funds and making transfers between accounts (thus hoping to stabilize liquidity and preserve virtual assets). And recently, the FBI did not allow Celsius CEO Alex Mashinsky to leave the United States for Israel. It seems that the case is gaining momentum…