Tuesday, December 6, 2022

Celsius, a cryptocurrency lender, does not demand repayment for outstanding debts

Celsius Network, a bankrupt cryptocurrency lender, stated on Friday that borrowers are not required to repay such debts and that Celsius Network would not attempt to enforce payment obligations for outstanding loans during its Chapter 11 proceedings.

headquartered in New Jersey In a document filed with the United States Bankruptcy Court for the Southern District of New York, Celsius said that no interest or penalties would be charged beyond the loan’s maturity.

Celsius filed for bankruptcy in July with estimated assets and liabilities between $1 billion and $10 billion and more than 100,000 creditors. As of July 13 of this year, the lender had around 23,000 retail customers with outstanding loans totaling $411 million that were secured by collateral with a market value of $765.5 million in digital assets. It also disclosed a $1.19 billion shortfall on its balance sheet.