Hoboken-Based Celsius Network May Be Talking Bankruptcy With Advisers, Wall Street Journal Reports

[This article was taken from NJTW News, an NJTechWeekly.com newsletter. Sign up for it here.] 

  • Celsius Network, the Hoboken-based cryptocurrency lender, may have hired restructuring consultants from advisory firm Alvarez & Marsal to assist with a possible bankruptcy filing, the Wall Street Journal and others reported on Friday.  
  • In mid-June Celsius froze deposits by “its estimated 500,000 users” because of “extreme market conditions,” with “no word on when it will be available again,” according to the Washington Post
  • The company also froze all swaps and transfers between accounts.  
  • As much as $8 billion in deposits is frozen, sources report.  
  • Celsius’s founder and CEO is Alex Mashinsky, a well-known, outspoken figure in the New Jersey tech world, who has appeared at NJ Tech meetups and TechUnited:NJ’s Propelify.  
  • In October of 2021, Celsius announced it had raised $400 million in a deal led by Caisse de dépôt et placement du Québec (New York) and by WestCap Group (New York). 

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