Celsius Network files for Chapter 11 bankruptcy

Cryptocurrency lender Celsius Network LLC announced it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

The company previously announced on its website the decision to pause all withdrawals, swaps and transfers between accounts "due to extreme market conditions," to protect its customers and stabilize its business.

Celsius said that it has $167 million in cash on hand to support certain operations during the restructuring process. The company filed with the court a series of customary motions to allow it to operate in the normal course, and to ensure a smooth transition into Chapter 11. These "first day" motions include requests to compensate the employees without disruption. Customer claims, however, will be addressed through the Chapter 11 process.

The company also appointed new directors in relation to the restructuring process. Xout Capital Founder and CEO David Barse was named director, along with Alan Carr, founder and managing member of Drivetrain LLC.

Kirkland & Ellis LLP is legal counsel, while Centerview Partners is the financial adviser to Celsius. Alvarez & Marsal is the restructuring adviser.