Yesterday, we reported that the crypto lender, Celsius, had almost repaid a total of $1 billion in debt to various companies. However, there were also some alarming signs concerning the company’s dealings. Today, the company filed for bankruptcy after a month of struggles.
Celsius is now left with a liquidity of $167 million. The company’s representative has stated that filing for voluntary bankruptcy will turn out to be a good move in the long run. The money will be used for company restructuring.
This news comes after the state of Vermont cautioned investors to be careful when dealing with Celsius. In addition, KeyFi Inc. filed a lawsuit against Celsius, accusing the lender of unethical and irresponsible behavior.
Celsius first ran into trouble in June. The lender then halted all withdrawals due to liquidity problems and adverse conditions amidst the current bear market.