Celsius Network

About Celsius Network

Celsius Network, a cryptocurrency lending platform, filed for Chapter 11 bankruptcy on July 13, 2022. Celsius had 4.7 billion in customer deposits. CEO Alex Mashinsky promised high yields on crypto deposits. Celsius invested deposits in risky decentralized finance protocols and illiquid mining operations. When crypto prices fell in 2022, Celsius could not meet withdrawal requests. The company froze customer accounts in June 2022. Mashinsky was arrested in July 2023 and charged with fraud. He pleaded not guilty. The bankruptcy court approved a restructuring plan in November 2023 that created a new company owned by creditors. Celsius demonstrated the risks of unregulated crypto lending platforms that promised unsustainable returns.