The Celsius Network is going through a very tough financial patch in recent times. For those who do not know, Celsius Network is a cryptocurrency lending company. The company is based in Hoboken, New Jersey and operated on a global basis. It also has offices in four different countries. However, in June 2022, the company came under the scanner after they indefinitely paused all transfers and withdrawals sighting “extreme market conditions”. Since then the company has been bankrupt and its financial troubles have increased manifolds.
In fact, a recent coin report stated that the Celsius Network had a balance gap of $2.85 billion. What is more significant here is that the figure is almost double the figure that they showed in their bankruptcy filing. Therefore, this is really alarming. If you want to know more about the balance gap of the Celsius Network, then this article is the perfect stop for you. Keep reading the article for detailed information about the balance gap.
Celsius Network: What Does The Report State?
Recently, a new bankruptcy report surfaced that claims that the actual debt of the Celsius Network stands at $2.85 billion. This is particularly significant as the network had earlier filed its bankruptcy claims of a $ 1.2 billion deficit. However, the new report does not stop only at this. It went on further to claim that the net liabilities of the company stand at $6.6 billion. In addition, the report also shows that the company has $3.8 billion of total assets under management.
These figures are also in sharp contrast to the original claims made by the network in their bankruptcy filing. In the original bankruptcy filing, the network stated that it had net liabilities of $5.5 billion and around $4.3 billion in assets. Thus in relation to the new claims that surfaced in the recent report, there is a deficit of $1.2 billion in the original bankruptcy filing made by the Celsius Network.
In fact, the newly surfaced report also shows some other important statistics related to the network. The report claims that the company has lost 62,853 BTC out of the total 100,669 Bitcoin invested by the investors. At present, the company holds only 37,926 BTC. Wrapped Bitcoin presently represents 64% of the company’s BTC debt. On the 14th of July, Celsius Network filed for Chapter 11 bankruptcy. This was led by the collapse of Terra-USD. This collapse, in fact, affected many crypto lenders in a negative manner.
Concluding Lines
A crypto entrepreneur named Simon Dixon had already criticised the report of the $1.2 billion balance gap and has suggested that the original gap stands at $3 billion. In fact, after the new report emerged, Simon Dixon tweeted to state that he had been right in claiming that Celsius Network was misleading people. Many experts have criticised the network right from the beginning. However, some users have kept supporting in the hope of recovering some of their lost assets. But as of now, with the emergence of the new report, Celsius Network’s financial trouble has increased to some extent.
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