The latest report from Crypto lender Celsius shows that it is running out of cash fast and has $2.8 billion in crypto liabilities.
Law firm Kirkland & Ellis filed estimations on August 14 which revealed that the lender could run out of funds by October. The firm also owes depositors a sum which is $2.8 billion more in crypto than the firm’s current holdings.
Celsius filed for Chapter 11 bankruptcy last month after the crypto crash forced it to stop withdrawals.
The projections by the law firm, however, have revealed that as of August, the firm still has about $130 million in cash balance but that would run out by October.
Considering all expenses like operating, capital and restructuring spendings, Kirkland & Ellis still predicts that the firm will be nearly $40 million in the red by the end of October.
The law firm disclosed a considerable imbalance between asset holdings and liabilities in the filing, and that accounted for a $2.8 billion hole in crypto liabilities. As of now, the firm holds $348 million in BTC on hand, with $2.5 billion in BTC liabilities.
The firm also found a $1 billion spread between ETH liabilities and ETH on hand, and a little less than $700 million gap in USDC liabilities. On top of that, Celsius also has a gap of $625 million in other crypto tokens.
Also Read: Celsius CEO Mashinsky Sold CEL Tokens during Recent Surge
