Celsius Network’s Actual Debt Revealed: $2.85 Billion

Celsius Network’s Reality Check

A recent report has unveiled that Celsius Network’s actual debt stands at a staggering $2.85 billion. This revelation contrasts sharply with the company’s earlier claims during its bankruptcy filing, where it only reported a $1.2 billion deficit.

Discrepancies in Reported Numbers

The updated report highlights net liabilities of $6.6 billion against total assets estimated at $3.8 billion. During its Chapter 11 filing, Celsius had only indicated having approximately $4.3 billion in assets versus $5.5 billion in liabilities, which was a significant underestimation.

Bitcoin Losses

Details from the report reveal that out of the 100,669 Bitcoin (BTC) deposited by users, Celsius has lost 62,853 BTC, leaving it with only 37,926 BTC. The utilization of Wrapped Bitcoin (WBTC) amounts to 64% of the firm’s total BTC debt, raising serious questions about the firm’s financial health and transparency.

Market Fallout and Community Reaction

Celsius filed for Chapter 11 bankruptcy on July 14, partly driven by the instability in the crypto market that followed the collapse of Terra-USD. This situation has sparked significant scrutiny and anger among the community and crypto experts alike. Simon Dixon, a prominent figure in the crypto space who has actively followed the Celsius situation, highlighted the discrepancies on social media, stating:

“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.”

Potential for Recovery

The community had previously rallied around Celsius hoping for a chance to recover their funds, which led to a few surges in the value of the Celsius token. However, the recent financial disclosures have further disillusioned many investors, causing concerns about ever getting their assets back.

Future Outlook

Okay, while the report highlights the scale of the difficulties faced by Celsius, it remains unclear how the firm plans to restructure its operations or if it can regain the trust of its users. The upcoming months will be critical to witness what steps Celsius will take and how the community responds in light of these new findings.