Insolvent Celsius Network Has A Balance Sheet Difference Of $1.2 Billion! Here’s What CEO Has To Say – Coinpedia – Fintech & Cryptocurreny News Media

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The ongoing case of the Crypto lender, Celsius, has a new twist every day that’s being brought into the spotlight.

Now, Alex Mashinsky, Celsius CEO has acknowledged that there is a difference of $1.2 billion in the company’s balance sheet. This was mentioned in the firm’s bankruptcy filings that were done yesterday, July 14.

The insolvent Celsius Network owes $5.5 billion to its clients and customers. Meanwhile, even though the company has paid off three loans associated with Defi protocols Maker, Aave, and Compound, Celsius has assets that are worth only $4.3 billion.

As per the reports, the firm had previously invested a huge part of its customers’ funds into its mining operations from a credit line that accounts for $750 million.

On the other hand, the FTX exchange had also provided a $108 million loan to Celsius against the collateral of $403 million worth of assets. It is said that FTX had also offered to acquire Celsius, but with a gap of $1.2 billion in Celsius’s balance sheet, the deal was called back.

Celsius Raised Only $600M Funding

On June 12, the very next day after Celsius CEO Alex Mashinsky claimed that there was not even a single person who had issues in withdrawing their funds, the firm froze all its users’ money. After this move, the company just had a pop-up on its website that it needs more time to stabilize.

At the time of filing the bankruptcy, yesterday, it was revealed that instead of $750 million, the insolvent company had escalated just $600 million in funding in 2021.

Additionally, 2,000 ETH, worth approximately $23 million at the time of filing, were maintained as collateral by the company for Symbolic Capital Partners, which is listed as its biggest secured creditor in the statement. Regarding unsecured credits, Pharos USD Fund, a Cayman Islands fund with an $81 million allegation, is the company’s biggest owed money.

In a nutshell, it can be said that this is a company’s poor asset distribution decisions.


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