Celsius Bankruptcy Filing Reveals $1.2B Hole in Its Balance Sheet

As stated in the company’s bankruptcy documents, embattled cryptocurrency lender Celsius has a $1.2 billion hole in its balance sheet. Celsius Seems To Be In Big Trouble The document filed to the U.S. Bankruptcy Court of the Southern District of New York shows that Celsius holds $4.3 billion of assets and $5.5 billion of liabilities. That means Celsius is $1.2 billion short and insolvent. In some ways, this confirms rumors that FTX refused to “rescue” the project after seeing a loss of this magnitude. Celsius is one of the several firms that have been hit hard by the ongoing liquidity crisis in the crypto sector. The company halted deposit withdrawals last month, hired restructuring experts to advise on its financial situation, and filed for bankruptcy protection this week. Interestingly, the company has a $40 million claim against 3AC, which, according to them, is “significantly less than the amount some other companies in the industry, such as Voyager, BlockFi and Blockchain.com, have against 3AC.” In a section explaining how Celsius found itself bankrupt, the company wrote that the number of assets on its platform grew faster than the crypto lender expected. “As a result, the company made what, in hindsight, proved to be certain poor asset deployment decisions. Some of these deployment activities took time to unwind, and left the company with disproportional liabilities when measured against the unprecedented market decline...