According to a coin report from Sunday, crypto lending platform Celsius is in debt to the tune of $2.85 billion, contrary to its previous reports. The recent reveal could spell greater trouble for the bankrupt firm seeing as their chapter 11 filing had claimed a different figure.
Contrasting Deficit Balances
Celsius was one of several platforms that crumbled in the wake of the Terra crash. The company also felt the pressure from the ongoing crypto slump and filed for bankruptcy in mid-July. In that report, Celsius only showed a $1.2B deficit, however, as stated earlier, the new release tells another story.
The new coin report unveiled net liabilities valued at $6.6 billion and asset holdings totaling $3.8 billion. In contrast, the filing saw Celsius claim $5.5 billion in liabilities and assets worth $4.3 billion. With these figures, the company’s debt stands at nearly $3 billion more than double the previous amount.
Given that these are court documents, the gap could see Celsius in hot water for allegedly being misleading.
Investor Bitcoin Deposits Missing
Additionally, the release pointed out that a huge portion of 100,669 Bitcoins Celsius held for investors was missing. Reportedly, 62,853 tokens are gone and right now there are only 37,926 BTC in the company’s position. As of now, 64% of the company’s Bitcoin deficit is composed of Wrapped Bitcoin (WBTC).
Simon Dixon, a crypto enthusiast and angel investor avidly following the Celsius debacle commented on the inaccuracies. Dixon shared the report in a tweet, highlighting the new deficit. Interestingly, Dixon had previously claimed Celsius had falsified their figures and misled followers.
However, at the time his allegations had upset people.
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,” he wrote.
Notably, a short squeeze coupled with Ripple acquisition rumors saw Celsius’ native token soar over the weekend. CEL nearly hit $4, although a long way from June’s lower price levels.