Celsius reports $1.2 billion gap in balance sheet
- July 15, 2022
- 0
news is updating Crypto lending platform Celsius Network reported that its liabilities exceed its balance sheet assets by nearly $1.2 billion. According to the new documents, it was
news is updating
Crypto lending platform Celsius Network reported that its liabilities exceed its balance sheet assets by nearly $1.2 billion.
According to the new documents, it was stated that as of July 13, the company had assets of $ 4.3 billion, while liabilities to customers and creditors amounted to $ 5.5 billion.
Celsius stated that its assets in CEL tokens are approximately $600 million, while in the same documents, the company noted that the total market cap of the coin as of July 12 was approximately $170.3 million.
Mashinsky attributed the company’s problems to a combination of bad investments, market conditions and an inability to manage the site’s rapid growth. As a result, Celsius was left with “a disproportionate responsibility”.
It is also understood from the documents that the largest unsecured creditor of the company is Pharos USD Fund SP, registered in the Cayman Islands.
Bloomberg learned that Pharos USD Fund SP is affiliated with Lantern Ventures. The latter is associated with Sam Bankman-Freed’s venture capital firm Alameda Research.
The latter is also included in Celsius CEO documents – the crypto lending platform owed him about $12.8 million.
In June, Bankman-Fried said that Alameda Research is making efforts to mitigate negative events in the cryptocurrency market due to Celsius issues.
The media reported that the FTX exchange, of which Bankman-Fried also co-founded, was considering the possibility of helping Celsius, including the takeover of the platform, but dropped the deal after examining the company’s finances. According to sources, FTX has found a hole in Celsius’ balance sheet of approximately $2 billion.
Remember, on July 14, Celsius Network and some of its subsidiaries filed for bankruptcy.
Prior to that, the platform fully repaid the loan on the MakerDAO DeFi protocol and pulled collateral for a total of 23,962 WBTC. Just hours after paying this debt, Celsius transferred 24,463 WBTC to an FTX address.
On July 13, Celsius repaid the last major DeFi loan in Compound protocol, releasing a collateral of just under $200 million in WBTC and more than 400,000 stETH by issuing a loan in Aave protocol the day before.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
