Crypto lending platform Celsius Network reported that its liabilities exceed those on its balance sheetnearly $1.2 billion in assets.
According to new documents, as of July 13, the company owned assets worth $4.3 billion. Its liabilities to customers and creditors amounted to $5.5 billion.
Data: Documentation filed by Celsius CEO Alex Mashinsky and law firm Kirkland & Ellis.
Celsius indicated that its holdings in CEL tokensare about $600 million. However, in the same documents, the company noted that as of July 12, the total market capitalization of the coin was approximately $170.3 million.
Mashinsky explained the company's problems as a combinationunsuccessful investments, market conditions and inability to manage the rapid growth of the site. As a result, Celsius «was left with disproportionate liabilities».
The company said it had repaid «almosteverything» loans in DeFi protocols and FTX as of the date of application. According to the data provided, the platform has one loan left for $3.2 million with collateral of $6.6 million.
In addition, Celsius talked about providingtwo loans to the hedge fund Three Arrows Capital for $75 million. When the latter began to have problems, the company forcibly partially liquidated the collateral. As a result, Three Arrows Capital owed Celsius $40.6 million. In early July, the hedge fund filed for bankruptcy.
The documents also show that the company's largest unsecured creditor is Pharos USD Fund SP, registered in the Cayman Islands.
Data: Documentation filed by Celsius CEO Alex Mashinsky and law firm Kirkland & Ellis.
Bloomberg found out that Pharos USD Fund SP is affiliated with Lantern Ventures. The latter is associated with Sam Bankman-Freed's venture capital firm Alameda Research.
The latter also appears in the Celsius CEO documentation — the crypto lending platform owed her nearly $12.8 million.
In June, Bankman-Fried said that Alameda Research was making efforts to mitigate negative phenomena in the cryptocurrency market due to Celsius problems.
The media reported that the FTX exchange, whose founderis also Bankman-Freed, who considered helping Celsius, including a takeover of the platform, but pulled out of the deal after reviewing the company's finances. According to sources, FTX found a hole in Celsius's balance sheet for about $2 billion.
Let us remind you that on June 13 the platform suspendedwithdrawals, exchanges and transfers between accounts. A month later, on July 14, Celsius Network and certain of its subsidiaries filed for bankruptcy.
Prior to this, the platform has fully repaid the loan inDeFi protocol MakerDAO and withdrew a total of 23,962 WBTC collateral. Just hours after paying off this debt, Celsius transferred 24,463 WBTC to an FTX address.
On July 13, Celsius repaid the last major DeFi loan in the Compound protocol and withdrew just under $200 million in WBTC, and the day before, the loan in the Aave protocol, freeing up more than 400,000 stETH collateral.
How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market
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