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“The next of many (or should I say, the next for most)…Much blood yet to be spilled. The graveyard will have many headstones,” tweeted Brandt.
As previously reported by ZyCrypto, after a month-long battle with insolvency concerns, Celsius has filed for Chapter 11 bankruptcy in the Southern District of New York. With the filing, Celsius joins the ranks of Voyager and embattled crypto hedge fund Three Arrows Capital which have all filed for bankruptcy in the last couple of months.
Celsius attributes its current predicament to the crypto market downturn further exacerbated by the Terra ecosystem collapse.
“Several negative events in the crypto space, including the implosion of Terra LUNA (‘Luna’) and its TerraUSD (UST) stablecoin (‘UST’), exacerbated this ‘cryptocurrency winter.’ The eventual implosion of Terra and the loss of over $50 billion in values of the Luna and UST coins over a three-day period created a domino effect, creating immediate issues for many market participants,” the filing reads.
 
 
Notably, the bankruptcy filing by Celsius reveals that the crypto lender’s liabilities exceed its assets by a whopping $1.2 billion. While the firm says in its press release announcing its bankruptcy that it is the best move for all involved, there remain concerns that account holders considered unsecured creditors in bankruptcy proceedings take low priority, as reported by the Washington Post.
It is worth noting that the latest statements from Brandt mirror that of other pundits in the crypto space. For example, Pantera Capital’s Dan Morehead, FTX’s Sam Bankman-Fried, and Binance’s Changpeng Zhao have expressed the same sentiment.
It remains unclear how long the current crypto bear cycle will last. Bitcoin remains over 70% below its all-time high formed in November, trading close to the $23k price point.
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