FinanceLane
  • Funding
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Commodities
    • Forex
    • Private Equity
    • Real Estate
    • Crypto Investing
  • Lending
    • Personal Loan
    • Business Loan
    • Mortgage
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Health Insurance
    • Auto Insurance
    • Education Insurance
    • General Insurance
  • Banking
    • Individual Banking
    • Business Banking
    • Investment Banking
    • Neo Banking
    • Payments Bank
  • Crypto
    • Crypto Coins
    • Crypto Trading
    • Bitcoin
    • Blockchain
    • DAPP
    • Crypto Investing
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Payments
    • Digital Banks
    • Alternative Financing
    • Asset Management
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Login
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading
FinanceLane
Home News Feed Blockchain News

$1.19B Deficit Hole Listed on Balance Sheet: Celsius Network

BlockchainbyBlockchain
July 15, 2022
in Blockchain News
Reading Time: 2 mins read

A $1.19 billion deficit was listed on Celsius Network’s balance sheet in a court filing on Thursday.

Celsius2_1200_630.jpg

“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. 

“Some 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 filing 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.

court filing.jpg

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 bankruptcy earlier this month.

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 left 1.7 million customers unable to redeem their assets by freezing withdrawals and transfers, which has prompted state securities regulators in New Jersey, Texas and Washington to investigate the decision.

According to Reuters, Celsius had about 23,000 outstanding loans to retail borrowers as of July 13. It added that the loans totalled $411 million backed by collateral with a market value of $765.5 million in digital assets.

Celsius had positioned itself in the market by promising more than 18% in interest to peoples’ holdings who deposit their digital coins. In turn, the crypto lender lent those coins out, Bloomberg reported.

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.

Image source: Shutterstock Read The Original Article on Blockchain.News

Tags: CelsiusDEFICITEnterprise

Related Topics

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Prev Next

You May Like

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Advisory

Bank FDs vs post office term deposit: Which offers senior citizens higher interest rate for short term

Blockchain

Crypto.com Offers Google Pay and Apple Pay Support for Canadian Users

Blockchain News

Coinbase Introduces PayID and Premium Services for Aussie Retail Customers

Blockchain News

Yuga Labs Sets Up BAYC Community Council to Boost Innovations

Advisory

Central govt employees: General Provident Fund (GPF), CPF interest rates announced for Oct-Dec 2022 quarter

Bitcoin

Bitcoin Crosses $20K Mark, as Whales Continue to Accumulate Tokens

Financial News

Advisory

How much worse will loan interest rates get for borrowers this FY? Here’s what experts say

FinanceLane
by FinanceLane
Advisory

When is the next PM Kisan instalment due?

FinanceLane
by FinanceLane
Bitcoin

Aave Integrates with Pocket Network for Dapps Development

Blockchain
by Blockchain
Blockchain News

Crypto Broker Genesis Cuts 20% Workforce, CEO Michael Moro Stepping Down

Blockchain
by Blockchain
Blockchain News

Argentina Halts Crypto Operations Undertaken by Financial Institutions

Blockchain
by Blockchain
Bitcoin

FTX and Busan Reaches Deal to Accelerate Blockchain Businesses

Blockchain
by Blockchain
Advisory

How to transfer EPF account from EPFO to employer’s EPF trust

FinanceLane
by FinanceLane
Advisory

Canara Robeco Small Cap mutual fund review: Strong showing in a short time

FinanceLane
by FinanceLane
Advisory

FD investors should use this formula to get maximum benefit from rising interest rates

FinanceLane
by FinanceLane
Advisory

Gold hallmarking is not mandatory for these commonly bought articles

FinanceLane
by FinanceLane
Blockchain

Thailand Plans to Amend Regulations Governing Crypto Assets

Blockchain
by Blockchain
Advisory

Here’s how Per Annum is helping Indians earn fixed and stable returns in a volatile products

FinanceLane
by FinanceLane
Load More
FinanceLane.com
  • Disclaimer
  • Privacy Policy
  • Terms of use
  • Subscribe
  • Contact

Subscribe to get the latest updates

Follow us on

© 2022 FinanceLane.com. All rights reserved.

  • Home
  • Funding
    • Equity Funding
    • Debt Funding
    • Real Estate Funding
    • Crowdfunding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2022 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.