Celsius Has $2.8 Billion in Crypto Liabilities: Court Filings

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Recent court filings from law firm Kirkland & Ellis show that crypto lending platform Celsius has $2.8 billion in crypto liabilities. The documents suggest that the crypto lender could run out of operational cash by October.

See related article: Celsius on thin ice long before bankruptcy: CNBC report

Fast facts

  • Celsius filed for Chapter 11 bankruptcy last month after the spiraling crypto market forced the lender to freeze withdrawals. Since then, the platform has hired restructuring lawyers from Kirkland & Ellis LLP to explore financing options.
  • While earlier documents suggested Celsius had a $1.2 billion gap in its balance sheet, the crypto lender’s financial situation has since deteriorated.
  • According to the latest court documents, Celsius has approximately $130 million in cash balance as of August. Still, Kirkland & Ellis predicts Celsius will have a deficit of nearly US$40 million by the end of October.
  • Deposits showed an even larger discrepancy of US$2.8 billion in crypto liabilities. Celsius currently holds US$348 million in BTC, with US$2.5 billion in BTC liabilities. The crypto lender also has a US$1 billion gap in ETH liabilities, nearly US$700 million in USDC liabilities, and a US$625 million gap in other cryptocurrencies.
  • The documents were filed ahead of the company’s second day hearing scheduled for Tuesday at 2 p.m. EST. A meeting of creditors is scheduled for August 19.

See related article: Celsius Bankruptcy Adds Chill to Crypto Sector

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