Hope for depositors dwindles as crypto lender Celsius files for bankruptcy
Washington PostDec 28, 2022
The Facts
Cryptocurrency lender Celsius network has filed for Chapter 11 bankruptcy after having paused withdrawals and transfers between accounts last month.
The company reportedly won't be seeking court approval to reinstate customer withdrawals "at this time," which means that accounts will remain frozen.
The Spin
Narrative A
This bankruptcy - hot on the heels of the lawsuit against the crypto lender - is bad news for Celsius and its customer whose chances of accessing their funds have now been dashed. The walls are closing in on Celsius and its demise highlights the doom and dire situation the crypto market has currently found itself in.
Narrative B
While Celsius is in a tight spot, the company has begun to pay off overcollateralized loans - unlocking more assets to pay off further loans - and this bankruptcy will allow the crypto lender to reorganize. There is hope for the company.
