Celsius has finally filed for bankruptcy: Law Decoded, July 18-25
2022.07.19 08:13
Celsius has finally filed for bankruptcy: Law Decoded, July 18-25
Reducing your initial debt of $820 million to just $0.013 over a month can’t be easy. And, it’s hardly surprising that such a heroic dash has led Celsius to bankruptcy. Last week, the crypto lending platform voluntarily filed petitions for Chapter 11 reorganization after closing off the last of its decentralized finance (DeFi) debts owed to Compound, Aave and Maker.
Although a Chapter 11 bankruptcy allows a company to stay in business and restructure its obligations, and there are successful examples such as American Airlines (NASDAQ:AAL), Delta, General Motors (NYSE:GM), Hertz and Marvel, some experts voice skepticism regarding Celsius’ chances to stay afloat. The proceedings could mean investors and customers of Celsius may not see their funds returned for the “foreseeable future,” similar to the fallout from the Mt. Gox hack in 2014, which is still ongoing.
