Celsius Network

Celsius Network, founded in 2017 by Alex Mashinsky, Daniel Leon, and Nuke Goldstein, was a cryptocurrency platform that offered users the ability to earn interest on their digital assets and secure loans using their cryptocurrencies as collateral. Headquartered in Hoboken, New Jersey, Celsius rapidly grew to manage nearly $12 billion in assets and serve 1.7 million users worldwide. The platform attracted users by offering high yields on deposits, with interest rates reaching up to 17% annually, and did not charge fees for its services. However, in June 2022, amid a sharp decline in the cryptocurrency market, Celsius halted all withdrawals and transfers, citing ‘extreme market conditions.’ This decision led to a loss of confidence among users and a significant drop in the value of its native token, CEL. The company filed for Chapter 11 bankruptcy in July 2022, disclosing a $1.2 billion deficit and owing $4.7 billion to its users. In January 2024, after an 18-month restructuring process, Celsius emerged from bankruptcy. The reorganization plan included distributing over $3 billion in cryptocurrency and fiat to creditors and establishing a new Bitcoin mining company, Ionic Digital, Inc., owned by Celsius’s creditors. This marked the conclusion of a tumultuous period for the company, which had once been a prominent player in the cryptocurrency lending space.