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One of the world’s largest cryptocurrency lenders Celsius Network has filed for bankruptcy, making the platform the latest victim of the recent bear market and adding another name to the growing list of crypto giants that have been brought to their feet.

Celsius issued a statement on Wednesday confirming that it had filed for bankruptcy protection, shattering the dreams of those invested and sending ripples of unease throughout the industry.

According to the statement, Celsius had initiated “voluntary Chapter 11 proceedings to provide the Company with the opportunity to stabilise its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders”. In the same statement, Celsius noted that it will continue to operate during the restructuring period using its remaining $167 million in cash. 

Alex Mashinsky, Co-Founder & CEO, Celsius noted:

“This is the right decision for our community and company. We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”

Only last year, the company was valued at $3.25 billion, but now the cryptocurrency giant joins the ranks of  Terra Luna, Voyager Digital, and Three Arrows Capital to be lined up for liquidation. Meanwhile, Digital asset exchange CoinFlex has also halted withdrawals. 

With the last few months of the crypto winter being characterised by the fall and collapse of several major crypto platforms and hedge funds, the industry is now experiencing the fallout from these, resulting in fragile investor confidence and greater scrutiny from regulators. 

Celsius halted all withdrawals and transfers last month amid extreme market conditions, citing “necessary action” in order to “stabilize liquidity and operations while we take steps to preserve and protect assets”. The latest update from Celsius puts a definitive end to the hopes that many investors may have reserved. 

The question that remains is how the broader impact of this will affect other players within the space, both from a regulatory perspective and the general sentiment of the crypto community.

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