Two weeks after announcing it was freezing withdrawals, Celsius has recruited specialists and may be preparing to file for bankruptcy, according to the Wall Street Journal.
It’s been nearly a week since Celsius last spoke: his last message on Twitter dated June 20, 2022. But, according to a Wall Street Journal article from June 24, the crypto exchange and staking platform has sought the help of several restructuring specialists, and may soon declare bankruptcy. For Celsius customers, it could mostly mean that they won’t get a refund and never see their money again.
Celsius’ troubles officially began on June 12, when the platform announced, to everyone’s surprise, that it was freezing customer withdrawals, for an indefinite period of time, citing ” extreme market conditions “. But from the beginning, rumors of his insolvency have been circulating, and the latest news does not bode well.
Celsius customers may never get their money back
According to the Wall Street Journal, Celsius would have hired consultants specializing in the restructuring. Their role, however, would not really concern the restructuring of the company’s debt, but would be to advise the company on a potential declaration of bankruptcy.
Celsius is a giant in the sector: the company would have more than 11.8 billion dollars in assets, and would have more than 1.7 million customers – who, for two weeks, can neither withdraw nor exchange their silver. The consequences would be terrible for them if the platform declares bankruptcy: it is not sure that they can recover their funds.
As Blockworks explains, “ if [Celsius] declares bankruptcy, there is no guarantee that customers can recover the funds they hold on the platform “. The company’s terms of use state that, in the event that Celsius goes bankrupt, goes into liquidation or is otherwise unable to repay its obligations, the digital assets deposited […] may not be recoverable, and you may not have any recourse “.
Since the Wall Street Journal announcement, Celsius has not communicated. The last speech of the company, which dates from June 20, was extremely short, and did not provide any answer to the many questions concerning its financial state. ” We want our customers to know that we are doing our best to stabilize our operations “, can we simply read in the press release. “ The interests of our community remain our priority “, However, assures the company.