Bankrupt Crypto Lender Celsius Has $1.2B Hole In Balance Sheet, Owes Creditors $5.5B

A recent court filing revealed a $1.2 billion hole within the balance sheet of crypto lender Celsius CEL/USD.
What Happened: Celsius has had an extremely tumultuous few months, facing large-scale illiquidity and having had to freeze cryptocurrency withdrawals from its platform.

In a recent court filing, Celsius advisory partner Kirkland & Ellis revealed that Celsius has $5.5 billion in liabilities, with $4.3 billion worth of assets.

The $1.2 billion hole in Celsius Network’s balance sheet derailed a potential deal with FTX FTT/USD. In the past week, Celsius has made significant loan repayments, repaying $258 million to Compound (CRYPTO:  COMP), $235 million to Aave AAVE/USD, and $223 million to Maker MKR/USD.

Despite its loan repayments, Celsius must continue to build upon its assets to fill the hole in its balance sheet and prevent liquidation. However, this is a daunting task considering the bearish downtrend for crypto markets, in which numerous lending and borrowing firms have faced liquidity crunches due to falling price levels for Bitcoin BTC/USD and other tokens.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsCelsius
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!