Celsius crypto lender files for bankruptcy amid mounting debts

-Celsius Networks has filed for Chapter 11 bankruptcy protection.

-In a statement, Celsius co-founder and Chief Executive Alex Mashinsky said the filing is “the right decision for our community and company.”

-Mashinsky said the move is a “defining moment” for the company.

-Celsius froze all user withdrawals and transfers about a month ago, citing “extreme market conditions” as the crypto market plunged.

-The company defended that “difficult but necessary” pause in withdrawals in its filing Wednesday.

-Celsius said it has $167 million in cash on hand, which will provide liquidity as it continues to operate during the restructuring process.

-Earlier this month, the former head of Celsius key investment strategy sued, claiming Celsius operated as “a Ponzi scheme” and used investor deposits to cover massive liabilities.

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