The US bankruptcy court has received a chapter 11 restructuring petition from Celsius, a New Jersey-based crypto lender. If accepted, it will allow the company time to redesign its consumers’ financial obligations.
According to the corporation, it presently has $167 million in cash on hand to maintain business operations while the process is underway. It also asked the court for permission to go on paying its employees and providing them with perks.
Celsius stopped all withdrawals, swaps, and transfers on its platform in June. However, it did not request authorization to permit client withdrawals in its chapter 11 plan. Instead, the company stated that it would take care of that throughout the restructuring process.
The business said in a statement that, had it not temporarily stopped withdrawals, some early adopters would have received full payment, allowing others to wait for Celsius to realize value from less liquid or longer-term assets.
However, several people were concerned that the chapter 11 proposal may lead to consumer deposits being paid back last. After the business disclosed the file, the cost of Celsius’ token, Cel, also decreased by around 50%.
