Celsius Files for Bankruptcy - Are Your Funds Stuck Too.😭 - video Dailymotion

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Celsius Files for Bankruptcy - Are Your Funds Stuck Too.😭

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00:00Welcome to Decentralized News. So it's finally seems like Celsius is going ahead and filing for

00:10bankruptcy. The troubled crypto lender says its purpose for taking the voluntary action is to

00:19enable a comprehensive restructuring plan that they intend to ensure it helps benefit all the

00:27stakeholders. So Celsius Network of course if you've been following this story it's been getting

00:33reported on everywhere is a lending crypto lender that's facing a liquidity crisis which filed for

00:42chapter 11 bankruptcy protection in the U.S. Banking Court of the Southern District of New York.

00:50Celsius put out a statement saying today's filing which was Wednesday just yesterday

00:57they said it followed the difficult but necessary decision by Celsius last month to pause withdrawals

01:05swaps and transfers on the platform to stabilize its business and protect customers and without a

01:12pause the acceleration of withdrawals would have allowed certain members those who were first to

01:18act to be paid in full while leaving others behind to wait for Celsius to harvest value from

01:26illiquid longer term asset deployment activities before they receive a recovery. So this might

01:35seem like for the company is the right decision for the community and Alex Mashinsky who's the Celsius

01:46co-founder and the CEO said in a statement that we have a strong and experienced team in place to lead

01:54Celsius through this process and is confident that they will look back at the history of Celsius and

02:03look at it as a defining moment where acting with resolve and confidence served the community and

02:10strengthened the future of the company. Clearly seeming like he still believes there's a chance Celsius can

02:17still go ahead and continue to exist after all of this chaos. So it is one of the few sort of crypto

02:27lenders facing financial troubles in the last few months. It suspended withdrawals back on June 12th and cut job

02:37highs and also hired restructuring experts to advise on its financial situation. It has a 167 million

02:48in cash on hand enough to support the operations during that restructuring process

02:55according to the company and they said they filed motions with the court to allow it to continue

03:00operating in the normal course so it can pay employees and continue benefits Celsius is not

03:07requesting authority to allow customer withdrawals at this time. It said customer claims will be addressed

03:15through the chapter 11 process so Kirkland and Ellis LLP is serving as the legal counsel here.

03:22Centreview Partners is serving as the financial advisor and Alvarez and Marcel is serving as the restructuring

03:30advisor to Celsius. So I just thought I'd give you that update on obviously these developments with Celsius.

03:41There was also an update with regards to their mining unit which also filed for bankruptcy

03:49and this is obviously just months after announcing that they had intentions to IPO so their mining unit which is

03:57said to have had intentions to go public actually did also file for chapter 11 bankruptcy with the parent

04:07company so obviously this will not be going ahead. Let me know if you are one of those people who had

04:16their funds stuck in Celsius. I am a Celsius user but fortunately I did pull out my money out of all the

04:24centralized lending and borrowing platforms kind of pretty much during the first leg of the retracement

04:33in the market when we topped up when we topped the 60k mark and it's just kind of a risk mitigation strategy

04:42that I've learned. You know with my time being in the markets you know I have lost previously to

04:50CRED. I had some money locked up in there when they went bankrupt this is I think a year or two ago

04:57so I've since learned and so I did have some money in Nexo and Celsius which I may manage to pull out.

05:05Nexo of course it still remains functional at this point but I think with all the risk that's in the

05:11lending and borrowing space especially with centralized platforms it's just not the move for me I've

05:19actually pivoted into buying tokens for decentralized marketplaces like I've been stocking up on Unicomp,

05:33Aave and I feel like these DeFi platforms have pretty much shown how resilient they are

05:43you know throughout this whole process and I think this is the test that I needed to see and also the

05:51prices were just looking right so I was picking these coins up when we hit the lows last month or a few

05:59weeks ago and I think a lot of them still look good today so yeah maybe something to consider but

06:07of course no financial advice let me know what you guys think about all of these developments with

06:13what's going on in Celsius do you still have faith in centralized lending platforms at the moment I think

06:20it's worth considering I've also pulled out a lot of any of my assets on centralized cryptocurrency

06:27exchanges and pretty much taking custody of my crypto myself and I think at this point in the market

06:36and with everything that's going on it is just the right thing to make sure you are fully protected

06:43and you're taking responsibility for your own security and not leaving it up to any entity to

06:51um pretty much hold your keys like share subscribe turn on the notification bell make sure you check

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07:39I'll see you guys in the next video peace

Celsius Files for Bankruptcy - Are Your Funds Stuck Too.😭

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