Troubled crypto lending and borrowing platform, Celsius Network has laid off 150 workers in a bid to stay in operation. The network has been in the news in recent weeks for liquidity crisis.
According to reports gathered, Celsius has now taken action to stave off bankruptcy by sacking its workers numbering up to 150.
The troubled lending and borrowing platform announced a pause on withdrawals on June 13, citing “extreme market conditions.” In the weeks before the announcement, rumors were circulating that the company was insolvent, a claim denied by CEO Alex Mashinsky at the time.
Since then, it emerged that a significant factor in the company’s downfall was a failure to manage risk appropriately.
Users of the platform are able to deposit a range of cryptocurrency digital assets, including BTC and ETH, into a Celsius wallet to earn a percentage yield, or take out loans by placing their cryptocurrencies as security. As of May 2022, the company had lent out $8 billion to clients and had almost $12 billion in assets under management.