The Strategist

Crypto platform Celsius Network owes users $4.7B

07/19/2022 - 03:46

U.S. cryptocurrency startup Celsius Network declared bankruptcy, stating in a court filing that its debt exceeds $5.5 billion. Of that sum, the firm owes its customers $4.7 billion. Images Images
In May 2022, Celsius Network, which was in charge of assets worth close to $12 billion, filed for bankruptcy due to severe issues brought on by the crash in the value of Bitcoin.

In an attempt to deal with the crisis, the company laid off 150 employees in June and froze client accounts indefinitely. However, these measures didn't help.

According to Celsius’ filing, the company now has $4.3 billion in total assets, much of which is illiquid. With Celsius' total debt reaching $5.5 billion, the company has a budget deficit of at least $1.2 billion.

The company will not be able to compensate its users for the $4.7 billion it owes until it finds additional financing.