Celsius Network has filed for bankruptcy
Bitcoin crash drives next crypto bank into bankruptcy / Celsius Network has filed for bankruptcy
Cryptocurrencies like Bitcoin are currently under a lot of pressure. Now the price slide is dragging another bank into the abyss. / Celsius Network has filed for bankruptcy
The recent price turbulence in Bitcoin & Co. is claiming its next victim: According to information on Wednesday, the bank Celsius Network, which specializes in cryptocurrency loans, filed for bankruptcy.
In this context, the usual applications were submitted to enable business operations to continue. The company has $167 million in cash for this purpose. However, a resumption of payments is not planned for the time being.
In mid-June, Celsius froze the balances of its 1.7 million customers in response to panic selling in the cryptocurrency markets. This caught the attention of regulators in several US states.
Boom during the corona pandemic / Celsius Network has filed for bankruptcy
The trigger for the downturn in cyber currencies was the drop in the price of the previously little-known Internet currency TerraUSD, whose price should actually be linked one-to-one to the US dollar.
Celsius rival Voyager Digital filed for bankruptcy last week. According to his own statements, he was torn into the abyss by failed loan payments by the hedge fund Three Arrows, which has also applied for bankruptcy protection.
Crypto banks like Celsius or Voyager experienced a boom during the coronavirus pandemic. They lured investors with high interest rates and customers with easier access to credit compared to traditional banks.
