The official statement states that “Celsius will still work”, since “it has US$ 167 million in cash available, which will provide ample liquidity to support certain operations during the restructuring process“, such as payment to its employees. And in the same text it was clarified that the fund “is not requesting authorization to allow withdrawals from clients at this time.”
Drag of the fall of Bitcoin and other cryptocurrencies?
The bankruptcy of this fund comes at a particular time. Bitcoin and cryptocurrencies fell around 70% from its maximum. After this fall, the ecosystem collapsed earth and their stableacoin crashed, TerraUSDY TerraMoon.
This caused yet another hedge fund to fail last month: Three Arrows Capital (3AC). Today its liquidation process is already underway and its directors are still missing despite being summoned by the courts.
The fall of this bottomdragged to the cryptocurrency platform VoyagerDigital, which filed for bankruptcy on July 6. In this case the relationship was direct, bankruptcy was declared when 3AC defaulted on a loan of about 670 million dollars, $350 million in USD and another $323 million for more than 15,250 bitcoin.
It all happened after the United States Federal Reserve would give end its flexible policy to start applying a more restrictive one. This generated liquidity restrictions, high interest rates and bond sales. All this affected the financial markets and the cryptocurrencies, evidencing a solvency crisis in companies in the sector.
Source: Ambito
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