Celsius network that recently went under filed for bankruptcy, claiming a $1.2 billion debt/deficit. However, a coin report on Celsius Network shows they have a real debt of $2.85B. This indicates that the crypto lender lied in their bankruptcy filings. It is difficult to ascertain why Celsius would not disclose the correct numbers when they filed for bankruptcy. Or, there could be a possibility that the report made a mistake in its calculations.
Celsius network bankruptcy filings
According to Celsius Network’s bankruptcy filings, they have a total liability of $5.5 billion and $4.3 billion in assets. This shows a difference of $1.2 billion, which was the claimed deficit by the company. On the other hand, the coin report shows that the company has higher liabilities at $6.6 billion and fewer assets at $3.8 billion. So, it looks like they disclosed incorrect numbers on both ends.
The coin report also showed that the Celsius Network lost over 60% of the total Bitcoins deposited by investors. They have only 37,926 Bitcoins left, and around 64% of their debt or liability is in Wrapped BTC. All in all, it doesn’t look good for Celsius Network.
Before the coin report was published, we already had Simon Dixon point out the gaps in Celsius’s numbers. But at the time, it was not accepted by the users, which makes sense as they lost a lot of money. However, now he has tweeted about the same again, which proves he was right all along.
Users are probably not getting their funds back
Users have even tried to rally Celsius’s native token in the hope of getting some funds back, but this latest report also ruined those plans. Even with the $1.2B debt, it was highly unlikely that the retail investors would get their funds back because they were already at the bottom of the list. And now, the $2.85 billion gap in Celsius’ balance sheet means there is hardly any chance of the users getting anything back.
This bear market has shown us that we cannot fully trust stablecoins and crypto lending platforms. Most of them have gone under in this bear market which is terrifying for a crypto investor.
What are your thoughts as the Celsius Network coin report shows a real debt of $2.85B instead of the claimed $1.2B? And why do you think the company quoted the wrong numbers? Let us know in the comments below. And, if you found our content informative, do share it with your friends.