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Celsius Says It Owes Its Users US$4.72B Amid A US$1.19B Balance Sheet Deficit
The document showed that Celsius had US$4.31 billion in assets and US$5.5 billion worth of liabilities as of July 13.
Himanshu S.
5:21 15th Jul, 2022
Markets

A day after filing for Chapter 11 bankruptcy, Celsius Network disclosed a US$1.19 billion deficit in its balance sheet in a new filing on Thursday by restructuring lawyers Kirkland & Ellis LLP.

User liabilities form the major chunk of liabilities at US$4.72 billion and Celsius’ cryptocurrencies form assets worth US$1.75 billion.

According to the company website, Celsius had nearly US$12 billion in assets under management in May 2022.

Last month, FTX reportedly walked away from making a deal with Celsius after it found a “US$2 billion hole” in the lender’s balance sheet.

Vermont’s Department of Financial Regulation (DFR) also noted on Tuesday that it believed Celsius to be “deeply insolvent” and “lacks the assets and liquidity to honor its obligations to account holders and other creditors.”

Celsius’ bankruptcy filing comes after the lender closed all decentralized finance (DeFi) loans worth US$223 to Maker protocol, US$235 million to Aave, and around US$258 to Compound, unlocking over US$1 billion in locked collateral.

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