A cryptocurrency lending platform and interest account. Users are offered interest on their digital assets, tied to the lending platform.
It was founded in 2017 by Alex Mashinsky and Daniel Leon.
Here is how it works:
- Individuals deposit their cryptocurrency through the Celsius application
- The cryptocurrency is loaned out to retail and institutional investors
- Each week the depositor receives a payout for the cryptocurrency loaned out
Another option is for users to deposit cryptocurrency as collateral and take out a loan against it.
Growth came from offering aggressive interest rates as high as 18%.
Filed For Bankruptcy
On July 13, 2022, in the Southern District of New York, Celsius filed Chapter 11 bankruptcy. This was done to restructure arrangements with the stakeholders. There are more than 100,000 creditors. Sam Bankman-Fried's Alameda Research, a crypto trading firm, is among major creditors.
The company listed $4.3 billion in assets and $5.5 billion in liabilities.
This move came after the company halted withdrawals of digital assets from the platform.