‘Gap’ in Celsius Network balance sheet amounts to $2.85 billion

Liabilities of the crypto-lending platform Celsius Network exceed its assets by $2.85 billion, according to an updated valuation as of August 14.

The first figure stands at $6.67 billion; the second at $3.83 billion. Of the total BTC entrusted by investors, 100,669 BTC, the company has lost 62,853 BTC. The “wrapped” version of the cryptocurrency accounts for almost two-thirds of the overall debt.

On July 15 the company said the capital shortfall did not exceed $1.2 billion.

The disclosed information threatens further problems for Celsius Network. The data could confirm concerns that the platform’s management may have deliberately misled creditors and provided the court with false information.

People were upset with me when I said #Celsius are missing lots of #Bitcoin & they are making up numbers with fake $CEL valuations. They confirmed they have lost 67,147 #BTC & $WBTC representing 64% of their #BTC debt. $438m of the hole is assuming they can dump all $CEL for $1 pic.twitter.com/KEQg7iu9bP

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) August 15, 2022

On July 13, Celsius filed for bankruptcy protection in New York under Chapter 11 of the U.S. Bankruptcy Code.

On July 19, the company unveiled a plan to reorganize the business. It envisages directing the profits of its subsidiary mining company toward reimbursing users’ losses and paying creditors. Prior to that, Celsius Mining filed with the SEC an application to conduct an IPO.

On August 12 it emerged that the Celsius Network creditors’ committee, during a bankruptcy court session secured an injunction on the sale of some of the mined Bitcoins.

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