(The Center Square) — An unlicensed cryptocurrency company operating in Vermont has filed for bankruptcy, state officials said.
Celsius, which offers interest-bearing crypto accounts, has filed for Chapter 11 bankruptcy, the Department of Financial Regulation announcement. On July 12, the company said it was stopping withdrawals, exchanges and transfers between customers.
The department reports that the company, along with several affiliates, has commenced voluntary Chapter 11 bankruptcy proceedings July 13 in U.S. Bankruptcy Court for the Southern District of New York.
According to the statement, Chapter 11 allows insolvent companies to reconfigure their financial obligations, whether through sale, reorganization or another method.
The company’s first hearing is scheduled for Monday at 2 p.m.
In court records, the company lists eight debtors, including Celsius Network LLC; Celsius Network Inc.; Celsius Network Limited; Celsius KeyFi LLC; Celsius Mining LLC; Celsius Network Lending LLC; Celsius Lending LLC; and Celsius US Holding LLC.
According to the statement, a small number of cryptocurrency companies have filed for bankruptcy and are going through the bankruptcy court system. The department said there “are few laws about how digital assets will be treated” in bankruptcy court, and it’s unclear whether account holders will be able to “sell or recover their cryptocurrency assets.” “.
According to the statement, the department will monitor the bankruptcy proceedings and urge investors in the company to consult their legal counsel regarding the situation.
Vermont residents with questions or wishing to file a complaint may do so by visiting the department website.