Celsius’s actual debt stands at $2.85 billion: Report

According to Cointelegraph, the latest report projected that the company’s total net liabilities stands stands at $6.6 billion and total assets under management at $3.8 billion

On July 14, the company filed for Chapter 11 bankruptcy after it became one of the cryptocurrency lenders to face the consequences caused by the fall in Terra USD collapse
On July 14, the company filed for Chapter 11 bankruptcy after it became one of the cryptocurrency lenders to face the consequences caused by the fall in Terra USD collapse

Filings from a new bankruptcy report has shown that cryptocurrency lender Celsius Network’s actual debt stands at $2.85 billion, as against their bankruptcy filing claims of a $1.2 billion deficit, as stated by Cointelegraph.

According to Cointelegraph, the latest report projected that the company’s total net liabilities stands stands at $6.6 billion and total assets under management at $3.8 billion. It further stated that the platform has got around $4.3 billion in assets against $5.5 billion in liabilities, which represent a $1.2 billion deficit. The coin report showed that of the total 100,669 Bitcoin (BTC) deposited by investors, the company has made a loss of approximately 62,853 BTC and currently holds around 37,926 BTC Wrapped Bitcoin (WBTC), which represents 64% of the company’s BTC debt. On July 14, the company filed for Chapter 11 bankruptcy after it became one of the cryptocurrency lenders to face the consequences caused by the fall in Terra USD collapse, which increased after the fall in cryptocurrency market.

Information from Cointelegraph showed that Simon Dixon, a cryptocurrency entrepreneur, with an interest in the Celsius group, who had said that the actual balance gap of the cryptocurrency lender is three billion dollars against the platform’s claims of $1.2 billion, took to Twitter to unveil his findings. Dixon added that people were not happy with the gaps on Celsius, and as the company was misleading and “making up numbers.”

Moreover, Cointelegraph noted that while many cryptocurrency experts have been critical of Celsius’s plans, the community tried to pull back some of their funds from the cryptocurrency lender. Due to a community-oriented short squeeze, the price of native token went up a couple of times after the bankruptcy. However, on the grounds of the latest findings, many existing account holders have been deterred about not getting their funds back.

(With insights from Cointelegraph)

Also read: What is the role of stablecoins in digital assets ecosystem

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