One month after closing its operations, the cryptocurrency exchange platform Celsius Network has filed for Chapter 11 bankruptcy protection, as it continues to struggle with liquidity problems.
Deficit of 1.19 billion dollars
The cryptocurrency trading platform Celsius Network, which officially filed for bankruptcy on July 13, has a deficit of $1.19 billion in its profit and loss statement. This is confirmed by court documents filed in a New York court.
After news broke that Celsius was suspending its operations, Bitcoin plummeted 15% in the markets. In the press release announcing its bankruptcy, Celsius Network also revealed that the company has only $167 million in cash, which will be used to “support operations and restructure the company.”.
Should Celsius fail to achieve the restructuring it seeks, there is a high risk that many of its clients will lose their assets. This news, coming amid a cryptocurrency bear market, has been particularly unwelcome, as many cryptocurrencies have continued their downward trend of recent days.
The truth is that this collapse of a renowned company is generating a lot of buzz. However, many media outlets are taking advantage of this situation to sow doubts, initially unjustified, about many other suppliers.
Some articles even question Binance, the largest exchange by volume, claiming that it temporarily halted Bitcoin transfers. According to Binance, it was a temporary error that lasted barely two hours, but it served as a pretext for many to criticize them with little justification.
This isn't the first time we've seen this kind of commentary in mainstream media, giving the impression that there's some kind of campaign underway to discredit cryptocurrencies. We hope that regulations will soon be in place to protect users, and not just to require them to pay the corresponding taxes. Only in this way will we be protected, at least in part, from problems like the Celsius debacle.
Sep 14, 2025
