Bankrupt Crypto Lender Celsius Has $1.2B Hole In Balance Sheet, Owes Creditors $5.5B

A recent court filing revealed a $1.2 billion hole within the balance sheet of crypto lender Celsius CEL/USD.
What Happened: Celsius has had an extremely tumultuous few months, facing large-scale illiquidity and having had to freeze cryptocurrency withdrawals from its platform.

In a recent court filing, Celsius advisory partner Kirkland & Ellis revealed that Celsius has $5.5 billion in liabilities, with $4.3 billion worth of assets.

The $1.2 billion hole in Celsius Network’s balance sheet derailed a potential deal with FTX FTT/USD. In the past week, Celsius has made significant loan repayments, repaying $258 million to Compound (CRYPTO:  COMP), $235 million to Aave AAVE/USD, and $223 million to Maker MKR/USD.

Despite its loan repayments, Celsius must continue to build upon its assets to fill the hole in its balance sheet and prevent liquidation. However, this is a daunting task considering the bearish downtrend for crypto markets, in which numerous lending and borrowing firms have faced liquidity crunches due to falling price levels for Bitcoin BTC/USD and other tokens.