Bankrupt Celsius Network’s Total Debt is $2.85 billion
A recent bankruptcy report reveals that cryptocurrency lender Celsius Network’s true debt is $2.85 billion, as opposed to their bankruptcy filing assertions of a $1.2 billion shortfall.
According to the most recent report, the company’s total net liabilities are $6.6 billion and its total assets under management are $3.8 billion. It was also revealed that the platform had around $4.3 billion in assets and $5.5 billion in liabilities, resulting in a deficit of $1.2 billion.
The coin report revealed that, of the entire 100,669 Bitcoin (BTC) placed by investors, the business has lost around 62,853 BTC and presently has approximately 37,926 BTC Wrapped Bitcoin (WBTC), representing 64% of its BTC debt. The firm filed for Chapter 11 bankruptcy on July 14 after becoming one of the cryptocurrency lenders affected by the Terra USD slump, which accelerated following the decline of the cryptocurrency market.
Also, Simon Dixon, a cryptocurrency entrepreneur with an interest in the Celsius group, turned to Twitter to reveal his findings. He said that the true balance gap of the cryptocurrency lender is three billion dollars, as opposed to the platform’s claims of $1.2 billion. Dixon noted that customers were dissatisfied with the discrepancies on Celsius, as the corporation was deceptive and “made up statistics.”
Despite the fact that many cryptocurrency professionals were sceptical of Celsius’s ambitions, the community attempted to withdraw cash from the cryptocurrency lender. The price of native token increased many times following the bankruptcy due to a community-driven short squeeze. The most recent results, however, have dissuaded many current account holders from requesting their monies back.