What happened to Celsius Network: a year in review

What was once a beacon of hope for cryptocurrency investors spiraled into a major financial fiasco. The crypto lender Celsius Network (CEL) that promised a new dawn in the decentralized finance (DeFi) movement collapsed in June 2022, sparking a wave of skepticism about the future of digital currency. A year later, we look back at the events that unfolded and assess what lies ahead for the crypto market.

Born with the ambition to mimic traditional banking but with a crypto flavor, Celsius Network enjoyed a brief moment of success before facing insurmountable challenges.

At its peak, the company claimed to have 1.7 million users, managed assets worth $11.7 billion, and made loans exceeding $8 billion.

Then came June 13, 2022. Citing “extreme market conditions,” Celsius Network decided to freeze all customer accounts. This unexpected move sent the price of bitcoin (BTC) and other cryptos into a tailspin, causing a ripple effect in the market.

Celsius’ financial health appeared grim. According to court filings, the company was $1.2 billion in the red, with a staggering $5.5 billion in liabilities and assets worth just $4.3 billion.

Most of the liabilities, $4.7 billion, represented customer holdings. To make matters worse, Celsius had a mere $170 million in cash to support its operations during its restructuring process.

What happened, and how is Celsius Network doing now? Let’s find out.

What is Celsius Network

Celsius Network LLC was a global cryptocurrency lending company headquartered in Hoboken, New Jersey, and branches in four countries.

As a prominent player in the digital finance arena, the company aimed to revolutionize the financial industry by promoting decentralization and offering high-yield opportunities to cryptocurrency holders.

At the heart of its operations, Celsius provided a platform where users could deposit cryptocurrencies into a Celsius wallet such as BTC and ETH. This innovative model allowed users to earn a percentage yield on their digital assets, leveraging the growth and potential

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Author: Ankish Jain

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