Celsius breaks silence as it attempts to ‘stabilize liabilities,’ ‘protect assets’ Celsius breaks silence as it attempts to ‘stabilize liabilities,’ ‘protect assets’
Celsius announces that it is exploring complex options to restructure liabilities in order to "preserve and protect assets."
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Updated: Jun. 30, 2022 at 6:24 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Celsius finally broke its silence with a June 30 blog post stating that it is “working as quickly as we can to stabilize liquidity and operations.” Behind the scenes, it claims that actions are being made to “take important steps to preserve and protect assets and explore options available to us.”
In new information, Celsius revealed that it is “pursuing strategic transactions as well as a restructuring of our liabilities.” The terminology used in this sentence is very close to the language used in Chapter 11 bankruptcy filings in the United States, where Celsius is based.
Rumors have been spreading that suggest Celsius has resisted guidance to file for bankruptcy from its lawyers.
Further information from the Celsius team will only be made available “when it becomes appropriate,” the company stated, without providing any further clarification.
On June 20, Celsius posted to the same blog that “our objective continues stabilizing our liquidity and operations. This process will take time.” It also closed off some means of communication with investors by “pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges.”
The previous update was on June 15, when it informed investors that it paused withdrawals to “stabilize our liquidity and operations.” It also stated that all investors would continue to “accrue rewards” while withdrawals are frozen.
In response to the statement, many investors were unhappy with the lack of further information.
The latest update from Celsius: pic.twitter.com/B5pcCUxaOQ
— Fintwit (@fintwit_news) June 30, 2022
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.