Crypto lender Celsius is the latest to file for bankruptcy

Celsius deposit for Chapter 11 bankruptcy, the company announced Wednesday.

News of her intention to file for bankruptcy, which has reportedly been a point of contention between the company and its advisers in recent weeks, spread as she briefed US state regulators on her plans, CNBC reportedciting Joseph Rotunda, director of enforcement at the Texas State Securities Board, and other sources.

Celsius is among the top crypto companies that have been rocked by a severe stock market crash that has seen the value of all cryptocurrencies plummet over the past seven months.

Celsius halted withdrawals, exchanges and transfers between accounts last month, citing the need to “stabilize its business and protect its customers”, the company said in announcing its bankruptcy filing. The company was sued by a former asset manager who accused Celsius of mismanaging client funds and failing to pay for its services.

“This is the right decision for our community and our business,” Celsius CEO Alex Mashinsky said in a statement. “We have a strong and experienced team in place to guide Celsius through this process. I am confident that when we look back on the history of Celsius, we will see this as a defining moment, where acting with determination and confidence served the community and strengthened the future of the company.

Six state regulators Also reportedly already started investigations into Celsius. California regulators calls on customers crypto lenders who suspended withdrawals to file complaints with the state’s Department of Financial Protection and Innovation.

Crypto broker Voyager Digital also recently filed for bankruptcy days after suspending trading and announcing that crypto hedge fund Three Arrows Capital had defaulted on a loan. Three Arrows Capital is also in liquidation in multiple jurisdictions, including a Chapter 15 filing in New York.

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