Crypto lender Celsius says it is exploring options

Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

June 30 (Reuters) – Retail crypto lending platform Celsius Network said on Thursday it was exploring options including deals and restructuring its liabilities.

Celsius earlier this month froze withdrawals and transfers, citing “extreme” market conditions, leaving its 1.7 million customers unable to redeem their assets. read more

The Hoboken, New Jersey, company hired restructuring consultants from advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing, the Wall Street Journal reported last week, citing people familiar with the matter. read more

The market for digital assets in recent months has been roiled by extreme volatility as investors dump risky assets due to fears that aggressive interest rate hikes to tame stubborn inflation could plunge the economy into a recession.

The European Union has agreed on groundbreaking rules for regulating crypto assets, EU lawmakers said on Thursday, as the rout in bitcoin piles pressure on authorities to rein in the sector. read more

Cryptocurrencies have lost more than $400 billion since TerraUSD, a major stablecoin pegged to the U.S. dollar, collapsed in May. Bitcoin tumbled another 6% to $18,866.77 late on Thursday, leaving it down over 70% from its peak last November. read more

Similar to a bank, Celsius gathered crypto deposits from retail customers and invested them in the equivalent of the wholesale crypto market, including “decentralized finance,” or DeFi, sites that use blockchain technology to offer services from loans to insurance outside the traditional financial sector. read more

Celsius promised retail customers huge returns, sometimes as much as 19% annually. The lure of big profits has led individual investors to pour assets into Celsius and platforms like it.

Reporting by Manya Saini in Bengaluru and Noel Randewich in Oakland, Calif.
Editing by Shounak Dasgupta and Matthew Lewis

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