Communication said the loss of $1.2 billion was the reason it had to declare bankruptcy, as well as disclose its affiliation with other organizations.

admitted to losing $1.2 billion. Photo: TheBlock

According to the file submitted to the court serving the bankruptcy process, the foundation Celsius Network admits to facing a deficit of up to $ 1.2 billion on its balance sheet - somewhat confirming rumors refused to "rescue" the project after seeing a loss of $ 2 billion.

Specifically, the company's debt and financial obligations are $5.5 billion, while the actual assets are only $4.3 billion. Of which, user debt is $4.72 billion, CEL debt is $210 million, custody debt is $180 million, and other debt is $390 million.

The company's remaining assets include $170 million in cash, $1.75 billion in assets different, $930 million in lending assets (but up to $310 million at risk of bad debt), $720 million in mining equipment, $180 million in custodial assets, $600 million in project CEL tokens and $270 million in other assets.

Celsius balance sheet as of July 10, 2022

The company also announced that it had closed most of the loans and stopped lending assets to serve the asset restructuring process under Chapter 11 bankruptcy regulations of the US law. This may be the reason why Celsius has recently made payments of more than 800 million USD in loans on different protocols. large include , MakerDAO and Compound, withdrawing more than $1.1 billion in collateral.

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The newly released document also shows that Celsius is also lending $75 million to Three Arrows Capital, a cryptocurrency investment fund that went bankrupt in early July. When Late to repay the loan, Celsius liquidated the loan's collateral and suffered a loss of $40 million — an amount the company claimed would require the investment fund to pay back in full.

In the opposite direction, Celsius borrowed USD 841 million from the issuer to be . During the difficult period in May and June, Celsius was unable to add more collateral to maintain the loan and accept to pay for the loan. liquidated assets with a loss of up to 94 million USD. This information has been previously edited Tether confirm and confirm the issuer not be associated with Celsius.

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