Celsius filed for Chapter 11 bankruptcy on July 13, 2022. CEO Alex Mashinsky was arrested and charged with fraud.
| Product Type | Crypto Lending + Planned Card |
| Token | CEL Token |
| Promised APY | Up to 17% (unsustainable) |
| Slogan | "Unbank Yourself" |
| Withdrawal Freeze | June 12, 2022 |
| Bankruptcy Date | July 13, 2022 |
Celsius Network marketed itself as a revolutionary crypto lending platform with the tagline "Unbank Yourself." They promised up to 17% APY on crypto deposits — rates that proved unsustainable.
The company used customer deposits for risky lending practices and investments. When the crypto market crashed in 2022, Celsius faced a severe liquidity crisis.
On June 12, 2022, Celsius froze all withdrawals without warning. Users woke up unable to access their funds. A month later, they filed bankruptcy.
In July 2023, CEO Alex Mashinsky was arrested on fraud charges. Prosecutors alleged he manipulated the CEL token and misled customers about the platform's safety.