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In this global debacle that cryptocurrencies have had, there are several transaction and lending platforms for these digital currencies, which have suffered the consequences of the falls in their values.
One of them is Celsius, a crypto lending company with 1.7 million users, who after long suspending withdrawals, exchanges and transfers between accounts, has now filed for bankruptcy.
You can read: Cryptocurrency Lending Platform Celsius Crashes, Preventing Users From Withdrawing Their Investments
Decision they have made taking advantage of the protection of Chapter 11 of the United States Bankruptcy Law, which allows companies to reorganize their businesses and maintain control over operations, under the supervision of a court.
As indicated in the report on their website, the pause in exchanges and transfers on their platform was intended to stabilize their business and protect their clients. “Without a pause, the acceleration of withdrawals would have allowed certain first-mover customers to receive full payment while others would have to wait for Celsius to calculate the value of their assets before receiving a recovery payment,” they said.
In any case, Celsius ensures that its estimated assets and liabilities are between 1,000 and 10 billion dollars, in addition to having $167 million dollars in cash available for some of the operations during the new restructuring process.
Restructuring that will lead to change its leadership to two new directors, David Barse and Alan Carr, trying to prevent an asset liquidation so that customers, who can buy cryptocurrencies, as well as take loans or invest their crypto assets to earn interest, do not lose their money due to bankruptcy.
Something that could happen anyway, since the terms and conditions of Celsius indicate that insolvency proceedings could lead to the loss of any and all Digital Assets.
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