Celsius’ Bankruptcy File Reveals More Untold Stories of Failures
2022.07.16 00:49
- Celsius Network said in its bankruptcy documents that the rapid growth it experienced sabotaged its success.
- FUD accelerated withdrawals of over $1 billion from the platform over five days in May 2022.
- Nonetheless, no legal actions against the company or its properties were presented as of the petition date.
Sequel to the earlier report that Celsius had filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, the debtor has provided more information about what transpired behind the scene.
Firstly, Celsius acknowledged that the company grew too rapidly, attracting more funds than anticipated. This resulted in short-sighted managerial decisions that hampered its business operations. In perspective, the crypto lender grew from $50 million in deposits in 2018 by 20,000% in three years.
The confession reads:
Celsius’ early success was not without its hiccups. The amount of digital assets on the Company’s platform grew faster than the Company was prepared to deploy. As a result, the Company made what, in hin …
