Alex Mashinsky-led Celsius Network recently laid off 150 employees.

Troubled crypto lender Celsius Network has finally entered a voluntary bankruptcy process and filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The step would “provide the Company with the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders,” Celsius said in a statement.

During the bankruptcy process Celsius will continue to operate using cash on hand as on date of $167 million.

Celsius’ insolvency follows other similar high profile crypto fold-ups such as Three Arrows Capital and Voyager Digital (TSE: VOYG) amidst a brutal crypto bear market. Another factor that has apparently triggered a domino effect in the industry may have been the Terra/Luna disaster which caused losses in the billions of dollars for investors.

Celsius had in June paused withdrawals, swaps, and transfers on its platform, citing “extreme market conditions.” That led to speculation about its long term solvency.

“Today’s filing follows the difficult but necessary decision by Celsius last month to pause withdrawals, swaps, and transfers on its platform to stabilize its business and protect its customers,” Celsius said. “Without a pause, the acceleration of withdrawals would have allowed certain customers—those who were first to act—to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.”

Earlier this month, Celsius laid off about 150 employees as it sought to extricate itself from its financial problems.

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