https://www.coindesk.com/business/2022/07/14/celsius-acknowledges-12b-hole-in-balance-sheet/

SearchIconBlack  Newsletters
 
DESK HUB
---------------------------------------------------------------------

  * Markets
  * Business
  * Tech
  * Policy
  * Newsletters
  * Indices
  * TV & Videos
  * Podcasts
  * Crypto Explainer+
  * Events
  * Research
  * About
  * Sponsored Content
    -----------------------------------------------------------------
  * WhiteLayersIconLayer 2

DESK HUB
 
Layer 2NewslettersSearchIconBlack

  * Markets
  * Business
  * Tech
  * Policy
  * Indices
  * TV & Videos
  * Podcasts
  * Crypto Explainer+
  * Events
  * Research
  * About
  * Sponsored Content

Bitcoin
$20,496.32+3.36%
Ethereum
$1,185.66+9.28%
Binance Coin
$236.70+4.59%
XRP
$0.329074+2.67%
Solana
$36.70+7.51%
Binance USD
$1.00-0.05%
Cardano
$0.437519+2.73%
Crypto.com
$0.117601+3.80%
Stellar
$0.105638+1.75%
FTX Token
$25.76+5.60%
Dogecoin
$0.061762+1.14%
Avalanche
$19.56+7.13%
Polkadot
$6.67+5.03%
Polygon
$0.689743+14.94%
Uniswap
$6.90+15.80%
Chainlink
$6.21+2.51%
Shiba Inu
$0.000011+1.69%
Tron
$0.066682+1.90%
Wrapped Bitcoin
$20,484.38+3.27%
ApeCoin
$4.65+3.84%
Axie Infinity
$13.77+4.67%
Litecoin
$50.97+4.84%
The Sandbox
$1.19+3.77%
Internet Computer
$6.77+9.13%
Cosmos
$8.87+11.40%
NEAR Protocol
$3.47+6.69%
Monero
$132.80+8.26%
Algorand
$0.326228+6.77%
Quant
$96.71+16.30%
Optimism
$0.490337+7.30%
Curve DAO Token
$1.15+11.68%
Ethereum Classic
$14.62+3.76%
Bitcoin Cash
$102.78+2.45%
VeChain
$0.022620+3.41%
Gala
$0.048937+3.29%
Decentraland
$0.829630+3.81%
Immutable X
$0.898197+3.95%
Flow
$1.55+3.86%
Aave
$88.50+13.30%
Elrond
$57.49+11.66%
Tezos
$1.55+4.83%
Hedera
$0.063570+1.86%
Filecoin
$5.35+2.64%
Theta
$1.15+2.45%
THORChain
$2.24+11.19%
Bitcoin SV
$51.96+2.12%
The Graph
$0.094918+3.10%
EOS
$0.966626+3.94%
Chiliz
$0.102901+2.93%
Ethereum Name System
$9.12+4.79%
Amp
$0.008867+2.37%
Celo
$0.874969+6.22%
Maker
$884.67+5.73%
NEO
$8.63+2.72%
Paxos Dollar
$1.00-0.04%
BitTorrent
$0.000001+1.41%
Synthetix
$2.69+9.31%
eCash
$0.000039+2.00%
IOTA
$0.265891+0.99%
Zcash
$56.81+6.54%
Fantom
$0.248944+4.61%
NuCypher
$0.164264+0.39%
Yield Guild Games
$0.635748+1.92%
Moonbeam
$0.605522+2.81%
Mina
$0.662529+3.39%
Zilliqa
$0.037631+3.78%
Nexo
$0.606792+2.15%
PAX Gold
$1,711.38-1.54%
Basic Attention Token
$0.382000+1.87%
Waves
$5.01+4.97%
Compound
$54.41+15.56%
Celsius
$0.764262-11.41%
Loopring
$0.379239+4.49%
Stacks
$0.376984+1.45%
Enjin
$0.494839+4.40%
Oasis Network
$0.049149+2.10%
Kusama
$50.75+5.14%
Raydium
$0.855463+18.71%
Dash
$43.25+3.74%
JasmyCoin
$0.009239+0.29%
PancakeSwap
$3.09+4.01%
Kava.io
$1.69+4.95%
TerraUSD
$0.035461-10.08%
Audius
$0.324801+3.73%
NEM
$0.039252+2.77%
Wax
$0.093234+0.91%
Sushiswap
$1.35+11.86%
Decred
$22.56-0.50%
Bitcoin Gold
$15.51+2.34%
0x
$0.287197+3.55%
Qtum
$2.74+2.28%
Serum
$1.07-1.04%
UMA Protocol
$2.56+3.15%
Storj
$0.643231+2.29%
Ankr
$0.026747+2.14%
IoTeX
$0.027842+3.58%
ICON
$0.269949+2.48%
OMG Network
$1.76+2.27%
Ravencoin
$0.021818+2.38%
SuperRare
$0.241898+8.26%
Secret
$1.00+5.68%
Yearn Finance
$5,976.68+4.37%
WazirX
$0.226705-1.75%
MOBOX
$0.569428+2.52%
Skale
$0.043761+4.21%
Livepeer
$8.20+2.64%
Siacoin
$0.003857-0.30%
Polymath Network
$0.193153+1.24%
COTI
$0.090233+5.63%
Keep Network
$0.173886+4.00%
Vulcan Forged PYR
$3.23-0.99%
Numeraire
$14.54+1.65%
SafePal
$0.302423+3.73%
Nervos Network
$0.003837+1.06%
Lisk
$1.02+1.71%
DigiByte
$0.009274+1.23%
Voyager Token
$0.468553-15.48%
Ren
$0.136057+10.75%
Civic
$0.135472+2.30%
Band Protocol
$1.34+7.18%
Moonriver
$12.28+2.92%
Injective Protocol
$1.25+4.34%
Alchemy Pay
$0.011974+2.17%
Nano
$0.878628+4.16%
Request
$0.112941+0.85%
Sun Token
$0.005665+2.72%
Joe
$0.286621+5.56%
Orchid
$0.106580+5.49%
SXP
$0.362793+4.76%
Bancor
$0.463527+2.09%
Syscoin
$0.153402+0.38%
Chromia
$0.173474+3.03%
CLV
$0.091447+5.22%
XYO Network
$0.006381+4.11%
Fetch.ai
$0.075908+4.45%
Augur
$7.90+1.74%
Steem
$0.204097+1.15%
iExec RLC
$0.927408+12.09%
Stormx
$0.007574+7.21%
Index Chain
$0.073761+9.06%
Kyber Network
$1.31+4.33%
Quickswap
$66.01+23.15%
Mirror Protocol
$0.176748+3.62%
Aragon
$1.62+3.50%
NKN
$0.089941+9.21%
Verge
$0.003457+3.19%
Enzyme
$24.58+3.60%
Polkastarter
$0.513642-0.08%
district0x
$0.046217+2.16%
Alpaca Finance
$0.234607+4.66%
Harvest Finance
$44.24+4.92%
Smooth Love Potion
$0.003887+4.74%
Quantstamp
$0.022940+2.30%
SingularDTV
$0.0004020.00%
Tether
$0.999202-0.04%
USD Coin
$0.999908-0.05%
Dai
$0.999929-0.04%
Crypto Prices Top Assets
Crypto Prices Top Assets
Business

Celsius Acknowledges $1.2B Hole in Balance Sheet

The news comes after the ailing crypto lender filed for bankruptcy
protection Wednesday.

By Krisztian Sandor
AccessTimeIconJul 14, 2022 at 7:25 p.m. UTC
Updated Jul 14, 2022 at 8:16 p.m. UTC
    
CoinDesk - Unknown

Celsius CEO Alex Mashinsky at Consensus 2019 (CoinDesk archives)

    
 
CoinDesk - Unknown

Krisztian Sandor

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has
written for Forbes and Reuters. He holds BTC and ETH.

Celsius Network, the liquidity-strapped crypto lender that suspended
withdrawals has a $1.3 billion hole in its balance sheet, according
to a new court filing from the company's advisory partner, Kirkland &
Ellis.

The document, which was filed to the U.S. Bankruptcy Court of the
Southern District of New York, shows that Celsius holds $4.3 billion
of assets and $5.5 billion of liabilities. In its list of assets,
Celsius claimed it has about $600 million in its CEL token. However,
the company noted in the filing the total market cap for CEL as of
July 12 was roughly $170.3 million.

CoinDesk - Unknown

A document filed by the firm's adviser shows Celsius has a deficit of
$1.2 billion. (Kirkland & Ellis)

Celsius is one of several firms that have been hit hard by the
ongoing liquidity crisis in the crypto sector. It halted deposit
withdrawals on June 12, hired restructuring experts to advise on its
financial situation and filed for bankruptcy protection on Wednesday.

As the firm was looking for solutions to its financial difficulties,
crypto exchange FTX reportedly walked away from talks about a
potential deal to acquire Celsius, pointing to a "$2 billion hole" on
Celsius's balance sheet.

However, Celsius started to make good on its debt to decentralized
finance (DeFi) protocols Aave, Compound and Maker as part of a
treasury-management maneuver to get a hold of its assets locked up as
collateral of the loans.

The crypto lender paid off $223 million to Maker, $235 million to
Aave and $258 million to Compound, closing its last loan on Tuesday,
as reported by CoinDesk.

As a result, the firm was able to reclaim almost $1.4 billion in
tokens, mostly held in the form of wrapped bitcoin (wBTC) and a type
of staked ether derivative (stETH).

Ryan Preston Dahl, a restructuring expert at the law firm Ropes &
Gray LLP, told CoinDesk TV's "First Mover" program that Celsius is
going into "uncharted territory" in filing for Chapter 11 bankruptcy
protection, because there has not been a precedent for a crypto
brokerage "trying to navigate through a reorganization as opposed to
a liquidation."

UPDATE (July 14, 20:08 UTC): Added detail and background throughout.

---------------------------------------------------------------------

Read more about

CelsiusBankruptcy
---------------------------------------------------------------------
 
Logo of BTCBTC$20,496.32
3.36%
 
Logo of ETHETH$1,185.66
9.28%
 
Logo of BNBBNB$236.70
4.59%
 
Logo of XRPXRP$0.329074
2.67%
 
Logo of SOLSOL$36.70
7.51%
---------------------------------------------------------------------
View All Prices
---------------------------------------------------------------------

Sign up for Market Wrap, our daily newsletter explaining what
happened today in crypto markets - and why.

[                    ]
Sign Up
By signing up, you will receive emails about CoinDesk product
updates, events and marketing and you agree to our terms of services
and privacy policy.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do
not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets
and the future of money, CoinDesk is a media outlet that strives for
the highest journalistic standards and abides by a strict set of
editorial policies. CoinDesk is an independent operating subsidiary
of Digital Currency Group, which invests in cryptocurrencies and
blockchain startups. As part of their compensation, certain CoinDesk
employees, including editorial employees, may receive exposure to DCG
equity in the form of stock appreciation rights, which vest over a
multi-year period. CoinDesk journalists are not allowed to purchase
stock outright in DCG.

 
CoinDesk - Unknown

Krisztian Sandor

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has
written for Forbes and Reuters. He holds BTC and ETH.

 
CoinDesk - Unknown

Krisztian Sandor

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has
written for Forbes and Reuters. He holds BTC and ETH.

---------------------------------------------------------------------
 
Logo of BTCBTC$20,496.32
3.36%
 
Logo of ETHETH$1,185.66
9.28%
 
Logo of BNBBNB$236.70
4.59%
 
Logo of XRPXRP$0.329074
2.67%
 
Logo of SOLSOL$36.70
7.51%
---------------------------------------------------------------------
View All Prices

Trending

1

CoinDesk - Unknown

The Breakdown, With NLW

The breakdown

Giving Up the Ghost? It's Chapter 11 Time for Celsius

Celsius Networks has moved into bankruptcy proceedings.

CoinDesk - Unknown
By Nathaniel Whittemore
Sponsored
Jul 14, 2022 at 9:38 p.m. UTC
Jul 14, 2022
The BreakdownPodcastsCelsiusBankruptcy

2

CoinDesk - Unknown

Business

Mining

Bitcoin Mining Rig Prices Slump to Near 2-Year Lows Amid Celsius
Bankruptcy

Celsius's mining unit is said to have auctioned off some of its newly
purchased mining rigs at fire-sale prices back in June, before filing
for bankruptcy.

CoinDesk - Unknown
By Aoyon Ashraf
Sponsored
Jul 14, 2022 at 9:09 p.m. UTC
Jul 14, 2022
MiningBitcoin MiningCelsiusBitmain

3

CoinDesk - Unknown

Learn

Learn

Trust Wallet 101: How to Get Started

Trust Wallet is a secure place where you can store a wide variety of
cryptocurrencies and NFTs.

CoinDesk - Unknown
By Mike Antolin
Sponsored
Jul 14, 2022 at 9:09 p.m. UTC
Jul 14, 2022
Beginner
LearnCryptocurrencyBeginnerWalletsBinance Chain

4

CoinDesk - Unknown

Markets

Market wrap

Market Wrap: Bitcoin Surges as Fed Governor Talks Down 100 Basis
Point Rate Hike

U.S. Federal Reserve Governor Christopher Waller said he supports
hiking interest rates by 75 basis points in July, alleviating some
fears of a 100 basis-point raise.

CoinDesk - Unknown
By Jimmy He
Sponsored
Jul 14, 2022 at 8:19 p.m. UTC
Jul 14, 2022
Market WrapMarketsBitcoinFederal ReserveVoyager Digital
 

About

AboutMastheadContributorsCareersCompany News

Stay Updated

EventsNewslettersFollow

Get In Touch

Contact UsAdvertiseAccessibility HelpSitemap

The Fine Print

Ethics PolicyPrivacyTerms Of UseDo Not Sell My Personal Information
---------------------------------------------------------------------

Please note that our privacy policy, terms of use, cookies, and do
not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets
and the future of money, CoinDesk is a media outlet that strives for
the highest journalistic standards and abides by a strict set of
editorial policies. CoinDesk is an independent operating subsidiary
of Digital Currency Group, which invests in cryptocurrencies and
blockchain startups. As part of their compensation, certain CoinDesk
employees, including editorial employees, may receive exposure to DCG
equity in the form of stock appreciation rights, which vest over a
multi-year period. CoinDesk journalists are not allowed to purchase
stock outright in DCG.

(c)2022 CoinDesk

EnglishMenuUpIcon