A $1.19 billion deficit was listed on Celsius Network’s balance sheet in a court filing on Thursday.
“The amount of digital assets on [Celsius’s] platform grew faster than the company was prepared to deploy. As a result, the company made what, in hindsight, proved to be certain poor asset deployment decisions,” Chief Executive Alex Mashinsky wrote in a filling, citing a poor investment and unanticipated loss are attributed to its loss, resulting in the disability of returning money to their clients.
"neki of these deployment activities took time to unwind, and left the Company with disproportional liabilities when measured against the unprecedented market declines.”
According to Financial Times, The 61-page podnošenje prijave showed the crypto lender with a liability of $5.5 billion, including a $4.7 billion user liabilities. The amount can be translated into a significant loss for these clients that need to face. Its assets value is $4.3 billion. Previously, Reuters reported the company has around 1.7 million in cash on hand.
A day earlier, the cryptocurrency lender had filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the Southern District of New York.
In the filing, New Jersey-based Celsius also said it had $40 million in claims against Singapore-based crypto hedge fund Three Arrows Capital. The hedge fund also filed for stečaj ranije ovog meseca.
The crypto lender froze all withdrawals and transfers around a month ago, citing unfavourable market situations as the crypto market plunged, cutting off access to savings for individual investors.
Celsius je ostavio 1.7 miliona klijenata u nemogućnosti da otkupe svoju imovinu zamrzavanjem povlačenja i transfera, što je navelo državne regulatore za vrijednosne papire u New Jerseyu, Teksasu i Washingtonu da istraže tu odluku.
Prema Reutersu, Celsius je do 23,000. jula imao oko 13 neotplaćenih kredita fizičkim licima. Dodaje se da su zajmovi ukupno iznosili 411 miliona dolara osiguranih kolateralom tržišne vrijednosti od 765.5 miliona dolara u digitalnoj imovini.
Celsius se pozicionirao na tržištu obećavajući više od 18% kamata ljudima koji deponuju svoje digitalne novčiće. Zauzvrat, kripto zajmodavac je posudio te novčiće, izvijestio je Bloomberg.
However, the lenders’ business model turned vulnerable after a sharp crypto market sell-off catapulted by the collapse of major tokens terraUSD and luna in May.
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Source: https://blockchain.news/news/1.19b-deficit-hole-listed-on-balance-sheet-celsius-network