U.S. crypto lender Celsius Network has become the latest victim of the fluctuation in the cryptocurrency market as the company filed for Chapter 11 Bankruptcy Protection.
According to the statement on Wednesday, the company said that it is looking to stabilize its business by restructuring in a way that maximizes value for all stakeholders. In the meantime, the company has $167 million in cash on hand to support operations.
“I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company,” Alex Mashinsky, co-founder and CEO of Celsius said in a statement, believing that the company has made the right move for the community and Celsius itself.
Celsius was among other crypto lenders and platforms that halted customers withdrawals last month, citing extreme market conditions that were fluctuating at the time.
The world’s largest crypto exchange, Binance, also paused Bitcoin withdrawals on June 13, blaming severe network congestion.
Celsius Network listed estimated assets and liabilities on a consolidated basis in the range of $1 billion to $10 billion, according to a filing for bankruptcy protection.
Earlier this month, Voyager Digital (TSE: VOYG), a crypto asset brokerage firm listed in the Toronto Stock Exchange, also filed for Chapter 11 Bankruptcy Protection as the company suffered from volatility in digital asset markets.
The filing of VOYG came after the company suffered from the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from its subsidiary, Voyager Digital.