Bitcoin, Celsius network also bankrupt. The accounts of millions of customers who were offered an 18% return are frozen

Another bankruptcy in the world of cryptocurrencies. Celsius Networkone of the largest digital currency operators in the world, has resorted to “Chapter 11”, the US bankruptcy procedure used to protect a company from the claims of creditors undergoing restructuring. The decision freezes millions of accounts. Celsius has around 100,000 creditors, the most exposed are Pharos fund ($ 81 million), Icb solutions ($ 13.3 million), Caen group (13.1 million). The Celsius crack follows the broker’s recent bankruptcy claims Voyager Digital and the hedge fund specializing in digital currencies Three Arrows Capital. Celsius has accumulated $ 20 billion in assets by offering to depositors interest of 18% only to block the operations of the accounts last June. The company enticed depositors by assuring that the risks were, however, contained. Those who agreed to be paid with the same company’s digital currency “Cel” earned the highest interest.

From the highs reached in November 2021, bitcoin (and in more or less similar terms the other digital currencies) has lost more than two-thirds of its value. In November it was trading around $ 70,000, now under $ 20,000. The collapse triggered some sort of rush to the counters virtual with investors asking en masse to sell cryptocurrencies so as not to accumulate other losses. Several operators in the sector have thus found themselves short of liquidity and forced to sell off assets in digital currencies (in the meantime in turn written down) held as collateral for deposits. Celsius said the bankruptcy procedure represents an “opportunity to stabilize its business, protect customers and maximize shareholder value.”

You thrive after 2008 in one completely anomalous monetary phase, digital currencies are now grappling with rate hikes initiated by central banks. These “squeezes” also have the effect of reducing the capital invested in the most speculative products. Cryptocurrencies have been looked at as potential alternative investment and defensive to the equity markets. So far, however, they have shown a very close correlation with stock indices, following their declines and even amplifying them.


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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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