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Celsius Network's new bankruptcy report filing shows a debt gap of $2.85 billion

New coin report reveals that Celsius' debt is more than double of what it claimed in its bankruptcy filing

By Shashank Bhardwaj

Image: Shutterstock

The saga of crypto lender Celsius continues as a new Coin Bankruptcy report filed by Celsius lawyers at the Southern District Court, New York, on 14 August shows that actual debt stands at $2.85 billion and not at $1.2 billion like the company claimed in the bankruptcy filing.

Net liabilities amount to $6.6 billion and the total assets under management are worth $3.8 billion, representing a debt of $2.85 billion which is more than double of what they had shown earlier. Meanwhile, their bankruptcy filing showed assets worth $4.3 billion and $5.5 billion in liabilities.

Furthermore, the report states that the company has lost 62,853 BTC out of its earlier holding of 100,669 BTC and currently holds only 37,926 BTC. Wrapped Bitcoin (WBTC) currently represents 64 percent of the company’s BTC debt.

Simon Dixon, a crypto entrepreneur, has commented on the Celsius case on social media earlier, claiming that the actual balance gap of the crypto lender is $3 billion against their original bankruptcy filing of $1.2 billion. He took to Twitter to comment on the new findings, saying that people had been upset about his comments earlier and claiming that he has been “making up numbers”.

Despite the controversy, the community initially rallied behind Clesius in the hopes of getting their funds back, which can be seen with the price surges in the native token due to the community-driven short squeeze, after the bankruptcy filing. However, the new information that has come to light seems to have put many people off the idea that they would be getting their funds back from the crypto lender.

Celsius Network became one of the many casualties in the Terra crash this year, filing for Chapter 11 bankruptcy on July 14. The crypto market collapse was also devastating for the crypto lender, leading it to declare bankruptcy.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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