CELSIUS NETWORK FILES CHAPTER 11 BANKRUPTCY


Celsius Network (Celsius) is a cryptocurrency company that offers its customers interest-bearing crypto accounts.  Celsius is not registered under Louisiana Securities Law.   On June 12, 2022, Celsius announced that it was pausing all withdrawals, swaps, and transfers between customer accounts.

On July 13, 2022, Celsius and several of its affiliates commenced voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of New York.  Public filings are available through a portal accessible at: https://cases.stretto.com/Celsius.  You may register on that site to receive email updates regarding future court filings.

Chapter 11 is a type of bankruptcy designed to allow insolvent companies to restructure their financial obligations, through reorganization, sale or otherwise. Very few cryptocurrency companies have filed bankruptcy proceedings to date in the United States.  As a result, there is little law on how digital assets will be treated in a bankruptcy proceeding and whether or not account holders will be able to sell or get back their cryptocurrency assets.

Customers of Celsius may wish to consult with their own counsel about how the bankruptcy proceeding will affect their rights and the value of their accounts with Celsius.

If you have questions please contact the Louisiana Office of Financial Institutions, Securities Division, at 225-925-4512.


Updated July 18, 2022