Celsius claims to continue operations throughout the process and vows to return stronger from bankruptcy.
One of the top platforms of crypto, Celsius, has confirmed that they are entering into chapter 11 bankruptcy proceedings on Wednesday. The hearings were held in Southern District Court, NY. This announcement was shared on the official Twitter handles of the company. They shared the news with their account holders through emails on Wednesday. However, they have vowed to emerge from chapter 11. They claim to have what it takes to emerge from bankruptcy and believes they are destined for greatness in the industry.
Even though chapter 11 bankruptcy will not make the business obsolete in the market, so there are chances that Celsius may still be well in business. Many companies have emerged from this bankruptcy, like Delta, Hertz and Marvel, American Airlines, General Motors, and more. However, experts fear an Mt. Gox 2.0 for the company. For context, Mt. Gox was a top exchange for Bitcoin for four years from 2010. However, after they went bankrupt in 2014, their customers still wait for their money.
Experts Fear The Money Invested In Celsius Might Not Return
Danny Talwar, working as the head of taxes in a renowned accounting software firm for crypto, Koinly, has recently shared his fears on the matter with Cointelegraph. Here he states that he fears the investor’s money might not return to their pockets anytime soon.
However, Celsius is working on getting out of the situation, and they are willing to return value to their customers. The company has paused any transactions for now. However, they have appointed a new director to help them guide through this restructuring process. They said they intend to keep paying the employees and continue their benefits.