A new bankruptcy coin report filed on Sunday shows that troubled crypto lender Celsius’ actual debt stands at $2.85 billion against their bankruptcy filing claims of a $1.2 billion deficit.
The latest report shows that the company has net liabilities worth $6.6 billion and total assets under management at $3.8 billion. While in their bankruptcy filing, the firm has shown around $4.3 billion in assets against $5.5 billion in liabilities, representing a $1.2 billion deficit.
The coin report also noted that of the total 100,669 Bitcoin (BTC) deposited by investors, the company has lost 62,853 BTC and currently holds only 37,926 BTC. Wrapped Bitcoin (WBTC) currently represents 64% of the company’s BTC debt.
The company filed for Chapter 11 bankruptcy on July 14 after it became one of the many crypto lenders to perish in the wake of crypto contagion caused by the now-defunct Terra-USD collapse, which was aggravated further after the crypto market collapse.
Related: Celsius lawyers claim users gave up legal rights to their crypto
Simon Dixon, a crypto entrepreneur with a keen interest in the Celsius case who had said that the actual balance gap of the crypto lender is $3 billion against their claims of $1.2 billion, took to Twitter to point to the new findings. He said that people were upset when he showed the gaps and the fact that Celsius was misleading and “making up numbers.”
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 #BTC & $WBTC representing 64% of their #BTC debt. $438m of the hole is assuming they can dump all $CEL for $1 pic.twitter.com/KEQg7iu9bP
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) August 15, 2022
While many crypto experts are critical of Celsius’s plans, the community had rallied behind the crypto lender in the hope of getting some of their funds back. The price of the native token has surged several times after the bankruptcy, thanks to a community-driven short squeeze. However, the latest findings seem to have deterred many existing account holders who are not so sure of getting their funds back.
Original Source: https://cointelegraph.com/news/celsius-network-coin-report-shows-a-balance-gap-of-2-85-billion
Author : Prashant Jha