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Celsius Network’s Actual Debt Is Close to $3B as Per New Report

UTC by Bhushan Akolkar · 2 min read
Celsius Network’s Actual Debt Is Close to $3B as Per New Report
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As per the latest report, Celsius’s current debt is more than what was reported in the bankruptcy filing. The company has reportedly lost a staggering 62,853 BTC deposited by investors.

New details are emerging for troubled crypto lender Celsius Network which filed for bankruptcy in July 2022. As per the bankruptcy filing, Celsius disclosed debt of $1.2 billion.

However, according to the latest Coin Report, this debt could be close to $3 billion. The Coin Report shows that the company’s net liabilities stood at $6.6 billion while its total assets under management stand at $3.8 billion. This brings the total debt at $2.85 billion.

However, in the bankruptcy filing, Celsius Network reported that it has $5.5 billion in liabilities and $4.3 billion in assets under management, representing $1.2-billion in debt.

In a stunning disclosure, Coin Report noted that investors had deposited a total of 100,669 Bitcoins (BTC) with Celsius. Of them, the company lost a staggering 62,853 BTC and now holds just the rest of 37,926 BTC. At the same time, Wrapped Bitcoins (WBTC) currently represent 64% of the company’s Bitcoin debt.

However, Coin Report is not the first to point out a greater hole in Celsius Network’s debt. Crypto entrepreneur Simon Dixon who has been closely following the Celsius case said that the actual debt of the company could be close to $3 billion. Citing data from Coin Report, Simon Dixon tweeted:

“People were upset with me when I said #Celsius are missing lots of Bitcoin & they are making up numbers with fake $CEL valuations. They confirmed they have lost 67,147 Bitcoin & $WBTC representing 64% of their Bitcoin debt. $438m of the hole is assuming they can dump all $CEL for $1.”

Putting light on Celsius’ Bitcoin mining activities, Dixon further noted:

“Many said #FUD when I said #Celsius maybe mining #Bitcoin unprofitably & that it won’t fill the hole. 58k rigs left them 348 #Bitcoin. Assuming $25k #BTC this gives $8.7m. They reported $18m hosting costs the same month. Not enough information but might be a $10m a month loss”.

Will Ripple Buy Celsius Assets Now?

Last week, reports surfaced that Ripple Labs is considering buying assets of the beleaguered crypto exchange Celsius Networks. One of Ripple’s spokespeople said that they “are interested in learning about Celsius and its assets, and whether any could be relevant to their [our] business”.

However, considering that there’s a huge anomaly in Celsius’ debt, will Ripple still proceed with the decision? It will be interesting to hear from Celsius over their recent debt allegations and if they can come clean on the matter.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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