Celsius has US$2.8B in crypto liabilities: court filings
Recent court filings from law firm Kirkland & Ellis show that crypto lending platform Celsius has US$2.8 billion in crypto liabilities. The documents suggest that the crypto lender might run out of operational cash by October.
See related article: Celsius on thin ice well before its bankruptcy: CNBC report
Fast facts
Celsius filed for Chapter 11 bankruptcy last month after the spiraling crypto market forced the lender to freeze withdrawals. Since then, the platform has hired restructuring lawyers from Kirkland & Ellis LLP to explore financing options.
While earlier documents suggested that Celsius has a US$1.2 billion gap in its balance sheet, the crypto lender’s financial situation has since become worse.
According to the latest court filings, Celsius has around US$130 million in cash balance as of August. Yet, Kirkland & Ellis projects that Celsius will have nearly US$40 million in deficit by the end of October.
The filings showed an even greater gap of US$2.8 billion in crypto liabilities. Celsius currently holds US$348 million in BTC, with US$2.5 billion in BTC liabilities. The crypto lender also has a US$1 billion gap in ETH liabilities, nearly US$700 million in USDC liabilities, and a gap of US$625 million in other cryptocurrencies.
The documents were filed ahead of the firm’s second day hearing scheduled for Tuesday, 2 p.m. EST. A creditor meeting is scheduled to take place on Aug. 19.
See related article: Celsius bankruptcy deepens chill over crypto sector