Celsius Network, one of the world’s largest cryptocurrency lenders, has filed for bankruptcy, as a wave of digital asset companies have frozen customer assets and entered restructuring amid a sharp sell-off in cryptocurrencies this year.
The Hoboken, New Jersey-based company’s Chapter 11 bankruptcy filing in a federal court in New York comes roughly a month after Celsius froze its customer assets, trapping billions of dollars across more than a million accounts.
The court filing listed between $1bn and $10bn in assets and the same amount in liabilities, and more than 100,000 creditors.
As cryptocurrencies have plunged in value in 2022, lenders offering high-yield cryptocurrency loans have faced cash crunches and customer redemptions, putting them on shaky financial footing. Some responded by blocking customer withdrawals, raising money at distressed prices or entering restructuring…