The platform under the continuous threat of liquidation, Celsius Network has an off-balance sheet with a $1.2 billion hole, according to the latest filing from the company’s advisory partner, Kirkland & Ellis.
The submission with the U.S. Bankruptcy Court of the Southern District of New York unleashed the fact that Celsius is currently holding up $4.3 billion worth of assets against $5.5 billion of liabilities.
Furthermore, Celsius claims that it retains $600 million tied to its CEL tokens. However, the company stated that the market cap of the CEL tokens as of July 12 was approximately around $170.3 million.
Celsius fell down after the massive sell-off under the threat that platforms could be liquidated. To prevent this, the protocol suspended deposits and withdrawals on June 12.
After that, the crypto lender appointed a legal advisory team for its financial crisis as well as for the restructuring process. Finally, Celsius filed for chapter 11 bankruptcy on July 13.
However, the downfall in crypto has forced numerous platforms to end their operations. Some of these platforms like Blockchain.com have been disrupted after the hedge fund Three Arrow Capital collapsed due to contagion.
