bankrupt cryptocurrency company Celsius (CEL) It was reported that it did not want to fulfill its payment obligations for outstanding loans.
Previously, CEO of Celsius Alex Mashinsky had resigned from his post. However, he still continued to hold the position of director of the company.
Bankrupt Cryptocurrency Company Celsius (CEL) Makes New Disclosure Due to Unpaid Loans
According to the statement, Celsius stated that it does not want to take responsibility for payment for outstanding loans during Chapter 11 transactions. This included borrowers who do not have to repay loans.
However, a budget deficit of approximately $1.19 billion was listed on Celsius’ balance sheet. About 23 thousand outstanding loans were mentioned to individual creditors. Total loans amounted to approximately $411 million.
The filing for bankruptcy comes at a time when the global crypto industry is in a historic collapse. This collapse Three Arrows Capital and Voyager Digital collapsed large digital asset firms such as Celsius’s legal issues were also revealed in this crypto drop.
Company partners applied to the court to form a committee so that they could get the necessary representation.
In this application, it was emphasized that the group of creditors wanted to increase the market value of the project.
As of now, there is not a single stakeholder representing Celsius at the table. There is no one representing the interests of the shareholders.
On the market side, the Celsius (CEL) token has been one of the biggest losers in the last 24 hours. Its price has dropped by about 6%. CEL was trading at $1.36 at the time of this writing.
*Not investment advice.
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