Beleaguered digital currency lender Celsius Network has revealed that it did not plan to ask its debtors to pay off their outstanding loans during its Chapter 11 bankruptcy proceedings.

Over the weekend, Reuters reported that with the firm having filed for bankruptcy, there is no plan to enforce payment despite the need to liquidate its creditors.

As the firm reiterated through a filing with the US Bankruptcy Court for the Southern District of New York, no penalties and interest will be imposed on its debtors as part of its plans to recover.

Celsius Network is the first among many crypto unicorns to suspend withdrawals in the wake of the collapse of the Terra ecosystem, and the extreme decline of the crypto market became too much to bear. The crypto lender tried to resolve its financial problems internally, but eventually filed for bankruptcy in July.

At the time of its bankruptcy, the company said it had a deficit of about $1.19 billion on its balance sheet. However, it has been shown that this sum exceeds this amount.

The assets and liabilities of the company are estimated to be between $1 billion and $10 billion. Celsius Network has struggled since it paused withdrawals, with the company rejecting one of the first takeover offers from the Swiss competitor, nexus.

In an attempt to resolve their issues and provide a speedy recovery to all stakeholders, Alex Mashinsky stepped down from his position as CEO of the platform and took on a supporting role to help provide relief to all involved.

The failure of Celsius Network, as well as that of Babel Finance, affected Zipmex, which also suspended withdrawals and filed for bankruptcy in Singapore. The cataclysmic event emanating from the crash of LUNA has affected more crypto unicorns than Celsius Network, Babel Finance, and Zipmex.

With analysts projecting a revival in the coming years, exchanges like Binance and FTX they have been helping most of the struggling companies.

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