Celsius Network filed for Chapter 11 bankruptcy in July 2022 after freezing customer withdrawals.
Celsius operated as a cryptocurrency lending and borrowing platform. Customers deposited digital assets and were offered interest, while the company lent assets to other market participants. A sharp cryptocurrency market decline in 2022 created severe liquidity pressure across the sector.
The company paused withdrawals, transfers, and swaps on June 13, 2022, citing extreme market conditions. It then filed for Chapter 11 protection in the United States Bankruptcy Court for the Southern District of New York on July 13, 2022.
Celsius is often confused with Voyager Digital and BlockFi, which also entered bankruptcy proceedings during the 2022 crypto downturn. Those were separate companies with different business models and bankruptcy filings.