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Celsius is a bankrupt cryptocurrency company involved in designing and developing application software. Celsius operates globally and has offices in four countries. The company provides a cryptocurrency lending as well as borrowing platform where membership offers access to curated financial services. In 2018, Celsius concluded its successful Initial Coin Offering (ICO), making CEL Tokens available globally.
As per the company website, it paid 5,100 BTC to the community as of March 18, 2022. Besides, it paid 83,332 ETH to the community as of June 8 this year.
Celsius also provides loan facilities, though not in all the geographies. The company’s interest rates differ depending on your choice of LTV (Loan to Value).
The blockchain-based lending platform was founded in 2017. The company was co-founded by Alex Mashinsky, Nuke Goldstein, and S. Daniel Leon. To date, Celsius has raised $864.3M in funding.
As of May 2022, the company had nearly $12 billion in assets under management (AUM). In June 2022, the company triggered a drastic fall in the price of major cryptocurrencies, including Bitcoin, after it indefinitely froze all transfers and withdrawals because of “extreme market conditions.” Later, in July, Celsius filed for Chapter 11 Bankruptcy.
On July 14, in its bankruptcy filing, the company reported a $1.19 billion deficit on its balance sheet. The company’s cash on hand came down to $167 million, which it said would provide “ample liquidity” to support its operations during the restructuring process. The bankruptcy of centralized crypto financial institutions like Celsius has resulted in many investors losing their trust in centralized storage and moving their funds into hardware cryptocurrency wallets.
Earlier this month, the company filed a motion where it sought to return $50 million of the $210 million held by almost 60,000 users in custody accounts. It categorically mentioned that only those users who didn’t seek to make money via its Earn program would qualify for this refund. This meant that users must only have their funds in Custody & Withhold accounts to receive the refunds.
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