Cryptocurrency lender Celsius Network files for bankruptcy

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One of the world’s largest cryptocurrency lenders has filed for bankruptcy, one month after halting withdrawals as tumbling digital asset prices drove it to the brink.

Celsius Network said the move would offer the “opportunity to stabilise” its business after a precipitous fall in the market value of cryptocurrencies.

The embattled company built one of the leading crypto lending platforms by assuring prospective customers it was less risky than a bank. Last month, however, it cut off customers’ access to their accounts and cited “extreme” market conditions.

Confirming it had initiated voluntary Chapter 11 proceedings in a New York court following weeks of market speculation, Celsius again defended its decision to freeze individual investors’ accounts in June as a “difficult, but necessary, decision”.

In a