Celsius network recently filed for bankruptcy. It was earlier claiming a $1.2 billion deficit. However, later it was revealed that the Celsius Network is originally in debt of $2.85B. Various analyses indicated that the network hid its real bankruptcy filings. But the reason for this lying is still unknown. Though, in several contexts, it is predicted that there might be mistakes in the circulated report.
Controversy In Real Gap :
The Celsius Network’s bankruptcy filings have shown they have a total debt of $5.5 billion and assets are $4.3 billion. According to this data, a $1.2 billion difference is there. But, another reliable report says that the network has higher liabilities than it shows in filings! It shows $6.6 billion debt and lower assets at $3.8 billion. It raised controversy regarding this serious matter of numbers.
The report revealed that the Celsius Network is under a loss of over 60% of the total Bitcoins deposited by the investors. According to the data, it had only 37,926 Bitcoins remaining. Alongside, they have around 64% of debt in Wrapped BTC.
Before The data comes in front, Simon Dixon has cued the gaps in Celsius’s network. Revealing the real data, users are in severe trouble as they come to know about their real loss.
Investors Are In Trouble :
Now users are expected not to get their capital back. They have even tried to rally Celsius’s native token hoping to get back some funds. They anticipated that the loss will be fulfilled through the returns. But the original figures are now the greatest concern of the investors.
As initially the liability figure was claimed as $1.2B, and it was predicted that the investors would get their funds back. Because the investors were situated at the bottom of the list. But the recent original debt figure of $2.85 billion on the balance sheet is scaring the investors. It seems there is hardly any chance of getting back the money.
Several crypto platforms have filed for their bankruptcy. As the global market is under a crypto-winter phase, the market is still volatile. Currencies are going through their ups and downs. Mainly, top currencies lost their values. Original crypto, BTC’s value loss influenced the whole crypto market in various ways. Even stablecoins are unable to maintain their stability.
The CEO’s Statement :
Notably, the CEO and the filing person of Celsius, Alex Mashinsky explained the company’s plans that they were following. According to the CEO, the company’s digital assets were increasing faster than the company intended to grow. Later it was discussed to deploy into backward assets of the company. This remark of the CEO created another concern about the crisis.
Apart from this, multiple users and experts defined the CEO’s views as incorrect. Though, this statement has raised another question: is bankruptcy just a rumor? According to the reports, the bankruptcy protection was filed after 9 days of the crypto broker Voyager Digital’s filing activity. That company also filed in the same court.
Previous Condition :
Additionally, Celsius faced a massive withdrawal from the investors. Also, the company started to trim its workers to reduce the cost. Celsius was grabbing the headlines for its insolvency. Although, the controversial data are now the main trouble for the investors. Will they get back their funds or it’ll be flooded in the loss of the network? Several questions are there in the market.
Alongside, the condition of the global crypto market is becoming severe. Investors are reluctant to invest in these bearish markets. The next bull run is the most anticipated thing in the global crypto market now.