Last month, Celsius suspended withdrawals and froze investor accounts due to poor market conditions.。This single field has become the focus of attention for a while, and this company'sStability is also starting to become a concern in the currency world.
On the 13th of this month, Celsius Network's official Twitter account stated thatFiled for bankruptcy in New York.Celsius Network underChapter 11 of the U.S. Bankruptcy CodeSubmit an application for voluntary reorganization.
Betrayal of an investor?
Cory Klippsten, the founder of Swan Bitcoin, pointed out that filing for Chapter 11 instead of Chapter 7 bankruptcyClearly indicates that control of the user's assets has always been in the hands of Celsius Network.。
If Celsius is serious about putting its users first, it should file for Chapter 7 bankruptcy and subject its debtors to the Securities Investor Assurance Act.Prioritization of compensation for customers。
Revelation of DeFi
According to the data on the chain, Celsius has repaid Compound approximately $120 million in DAI and received back 4,400 wBTC that were originally used as collateral, and Celsius has also paid off its debt to MakerDAO, paying $190 million in DAI since July 2nd.
Assuming that the borrower eventually fails to pay, the DEX (decentralized exchange) will automatically liquidate and sell the borrower's collateral according to the smart contract, thus proving that DeFi is less vulnerable to manipulation than traditional financial systems.。
Celsius Network CEO Alex Mashinsky said that the company's bankruptcy filing was the best decision for Celsius and its investors. He continues to believe that this decision will help Celsius in the future. In a court filing, Celsius estimated that it has assets and liabilities of between $1 billion and $10 billion, with more than 100,000 creditors, and $167 million in cash on hand.
Celsius Network will use the $167 million it has on hand to support the reorganization. It has also filed a number of motions with the Court to continue to operate in the normal manner.
However, Celsius Network's Chapter 11 bankruptcy filing may be good news for the currency community as it means that Celsius will not be selling its holdings into the already depressed currency market in order to get back the cash flow to pay back its customers.