Israeli crypto firm Celsius files for bankruptcy
Cryptocurrencies have plummeted in value this year.
The Israeli cryptocurrency company Celsius has filed for bankruptcy, becoming the latest casualty in the worldwide cryptocurrency crash.
The New Jersey-based, Israeli-founded firm filed for bankruptcy in New York City yesterday. Celsius said in a statement that the decision will "provide the Company with the best opportunity to stabilize the business (and) consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.”
Celsius filed for Chapter 11 bankruptcy, which allows firms to remain in operation while restricting their debt. It also gives companies a reprieve from paying creditors during the restructuring. Filing for Chapter 11 may result in the company being valued for less in the future.
Celsius serves as a sort of cryptocurrency bank, allowing users to buy, pay and borrow with cryptocurrencies. The company’s headquarters are in New Jersey, but it also has 100 employees in Israel. It was founded in 2017 by Israeli entrepreneurs.
