Suspending withdrawals and filing for bankruptcy cryptocurrency It was seen in the document submitted to the court by Kirkland & Ellis, the consulting partner of the company, that Celsius Network has a hole of approximately $ 1.3 billion in its balance sheet.
Celsius Has $5.5 Billion in Debt and $4.3 Billion in Assets
The document, filed with the U.S. Bankruptcy Court for the Southern District of New York, shows the company has $4.3 billion in assets and $5.5 billion in liabilities.
In the assets listing, Celsius claimed to have around $600 million in CEL tokens. However, the company noted in its filing that as of July 12, the total market value of CEL was approximately $170.3 million.
Celsius is one of the few firms to be hit hard by the ongoing liquidity crisis in the crypto industry. The firm stopped withdrawals on June 12, hired restructuring experts to advise on its finances, and filed for bankruptcy protection Wednesday.
As the company seeks solutions to its financial difficulties, crypto exchange FTX has reportedly walked away from talks about a potential deal to acquire Celsius, citing a “$2 billion hole” in the company’s balance sheet.
The cryptocurrency lending company recently closed its last loan on Tuesday, paying $223 million to Maker, $235 million to Aave and $258 million to Compound.
As a result, the company was able to reclaim approximately $1.4 billion of tokens, mostly held in the form of wrapped bitcoin (wBTC) and stETH, a type of staked Ethereum derivative.
*Not investment advice.