Celsius bankruptcy filings show company in deep trouble
Bankrupt crypto lender CeFi has a deficit of around $1.2 billion, with the majority of its liabilities being deposits of customers, some think they may not be obligated to have it given back.
New
Celsius' bankruptcy filing revealed a few nasty surprises about the state of the crypto lending platform, including a $1.2 billion deficit formed largely due to user deposits.
A Chapter 11 bankruptcy document signed by Celsius CEO Alex Mashinsky on July 14 revealed that the company has approximately $4.3 billion in assets against $5.5 billion in liabilities, which represents a deficit of $1.2 billion.
User deposits made up the majority of liabilities at $4.72 billion, while Celsius assets include CEL tokens as assets valued at $600 million, mining assets worth $720 million and $1.75 billion in crypto assets.
The value of CEL tokens, however, has drawn suspicion from some members of the crypto community, as the total market capitalization of CEL tokens is only $321 million, according to data from CoinGecko.
Celsius balance sheet shows 1.2 deficit billion.< /figure>Among the crypto assets are 410,421 Lido Staked ETH (stETH) tokens worth around $479 million which generate 5% APY, although the tokens themselves- same cannot be exchanged for Ether (ETH) until the Ethereum network transitions to Proof-party consensus in the merger.
Celsius CEO Alex Mashinsky has signed a document saying the company may also sell Bitcoin (BTC) mined by its Celsius Mining Bitcoin mining operation to “generate...
Bankrupt crypto lender CeFi has a deficit of around $1.2 billion, with the majority of its liabilities being deposits of customers, some think they may not be obligated to have it given back.
New
Celsius' bankruptcy filing revealed a few nasty surprises about the state of the crypto lending platform, including a $1.2 billion deficit formed largely due to user deposits.
A Chapter 11 bankruptcy document signed by Celsius CEO Alex Mashinsky on July 14 revealed that the company has approximately $4.3 billion in assets against $5.5 billion in liabilities, which represents a deficit of $1.2 billion.
User deposits made up the majority of liabilities at $4.72 billion, while Celsius assets include CEL tokens as assets valued at $600 million, mining assets worth $720 million and $1.75 billion in crypto assets.
The value of CEL tokens, however, has drawn suspicion from some members of the crypto community, as the total market capitalization of CEL tokens is only $321 million, according to data from CoinGecko.
Celsius balance sheet shows 1.2 deficit billion.< /figure>Among the crypto assets are 410,421 Lido Staked ETH (stETH) tokens worth around $479 million which generate 5% APY, although the tokens themselves- same cannot be exchanged for Ether (ETH) until the Ethereum network transitions to Proof-party consensus in the merger.
Celsius CEO Alex Mashinsky has signed a document saying the company may also sell Bitcoin (BTC) mined by its Celsius Mining Bitcoin mining operation to “generate...
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