Cryptocurrency lending platform Celsius stated the lack of $1.2 billion was the explanation it needed to declare chapter.
Celsius reveals the reason for chapter
In line with filings filed with the bankruptcy court, crypto lending platform Celsius Community admitted to going through a deficit of as much as $1.2 billion on its stability sheet – considerably confirmed rumors that FTX refused to “rescue” the challenge after seeing a lack of 2 billion USD.
Particularly, the corporate’s debt and monetary obligations are $5.5 billion, whereas the precise belongings are solely $4.3 billion. Of which, consumer debt is $4.72 billion, CEL debt is $210 million, custody debt is $180 million, and different debt is $390 million.
The corporate’s remaining belongings embrace $170 million in money, $1.75 billion in varied crypto belongings, $930 million in lending belongings (however as much as $310 million vulnerable to unhealthy debt), $720 million mining gear, $180 million in custody belongings, $600 million in challenge CEL tokens, and $270 million in different belongings.
The corporate additionally introduced that it had closed most of its loans and stopped lending belongings to serve the asset restructuring course of underneath Chapter 11 chapter laws of the US legislation. This can be the explanation why Celsius has just lately made funds of greater than $800 million in loans on main DeFi protocols together with Aave, MakerDAO and Compound, withdrawing greater than $1.1 billion in collateral.
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