Indebted Celsius Network asks customers to hold their crypto positions

Celsius Network, the indebted cryptocurrency lender that roiled markets when it froze customer withdrawals in June, plans to ask creditors to take another bet on digital assets to recover their investments.

The company conducted its first day in court on Monday after it filed for Chapter 11 bankruptcy in New York last week.

In a presentation uploaded to its bankruptcy website, Celsius said it planned to give customers the option “to recover either cash at a discount or remain ‘long’ crypto”, suggesting it would give creditors the option to maintain their original positions.

The presentation also showed that Celsius’ assets under management had shrunk to just $4.3bn, down from $22.1bn at the end of March, mostly driven by a plunge in the value of its crypto assets.

The company has a $1.2bn shortfall in assets, according to its court filing. Last month, Celsius suspended customer withdrawals amid a plunge in the value of the biggest digital currencies.