Celsius Network, a bankrupt cryptocurrency lender, stated on Friday that borrowers are not required to repay such debts and that Celsius Network will not be attempting to enforce payment obligations for outstanding loans during its Chapter 11 proceedings.
In a filing with the US Bankruptcy Court for the Southern District of New York, the New Jersey-based Celsius declared that no interest or penalties would be applied beyond the loan’s maturity.
With estimated assets and liabilities between $1 billion and $10 billion, along with more than 100,000 creditors, Celsius filed for bankruptcy in July.
As of July 13, the lender had around 23,000 retail borrowers with outstanding loans totalling $411 million, secured by collateral with a market value of $765.5 million in digital assets, and a $1.19 billion deficit on its balance sheet.
