The size of bankrupt centralised finance (CeFi) lender Celsius Network’s deficit has become clear in the company’s latest public filing.
The company has a US$1.19bln black hole on its balance sheets, according to the document filed by the Kirkland & Ellis law firm.
Total liabilities equal US$5.5bln, comprising:
- US$4.72 of user liabilities
- US$210mln of CEL token liabilities
- US$180mln of custody liabilities and
- US$390mln of “other” liabilities
Failing to offset this amount is the company’s US$4.31bln worth of assets held in cash, crypto, loans and mining assets.
The balance sheet paints a vastly different picture to CEO Alex Mashinsky’s conviction that Celsius was in the black in the run up to the sweeping asset freeze placed on users’ funds on June 13.
The disclosure comes a day after Celsius officially filed for Chapter 11 bankruptcy protection, leaving users with little hope of retrieving their withheld funds, at least in the short term.
Major creditors of Celsius include technology companies The Caen Group and ICB Solutions, South African crypto exchange AltCoinTrader, tokenised fund Invictus Capital, Sam Bankman-Fried’s Alameda Research, and a litany of high-value customers.