Well there it is. Despite encouraging proactive actions of aggressive debt pay offs over the past few weeks, Celsius Network filed for Restructuring under Chapter 11. This unraveled as a seemingly logical “next step”.
This is the official email letter notice that members of the Celsius Network Community received earlier this evening around 7:35 pm CST:
Moments ago, we announced that Celsius voluntarily filed petitions for Chapter 11 reorganization. You will be able to find the official announcement here.
Today’s filing follows the difficult but necessary decision by Celsius last month to pause withdrawals, Swap, and transfers on its platform to stabilize its business and protect its customers. Without a pause, the acceleration of withdrawals would have allowed certain customers—those who were first to act—to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.
Following the stated pause on June 12, 2022, we want you to know that we spent a great deal of time exploring our options.
These Chapter 11 cases provide the Company with the best opportunity to stabilize the business, consummate a comprehensive restructuring transaction that maximizes value for all stakeholders, and emerge from Chapter 11 positioned for success in the cryptocurrency industry.
We apologize that communication with our teams and community has been very limited over the past few weeks, and we look forward to being able to offer greater transparency with everyone through our reorganization, which encourages dialogue with all stakeholders.
For additional information regarding Chapter 11 protection, please watch this video.
Additional information about the Chapter 11 filing, including Court documents, can be found at https://cases.stretto.com/
Acting in the best interest of our stakeholders, including our entire customer community, is our top priority. We are also entering this process with the intention of emerging as a stronger company.
Don’t forget to share and tag this update with your fellow crypto die-hards!