Celsius Network Owes Customers $4.7 Bln

The document sent to the court states that the company owns assets worth $4.31 bln. The total amount of financial liabilities of the company is $5.5 bln, of which $4.7 bln are accounted for by the funds of platform users, which are stored on their balance sheet. Thus, the budget deficit of the Celsius Network platform is $1.2 bln.

Celsius Network wants to restructure its business under the US Bankruptcy Code. The director of the company, Alex MASHINSKY, offered to sell bitcoins, which are mined by the Celsius Mining Bitcoin enterprise. According to him, the proceeds will be enough to pay off at least one loan. It is expected that in 2023 the firm will be able to mine approximately 15,000 bitcoins for $308 mln at the current rate.

However, economist Frances COPPOLA doubts that Celsius Network will cope with debt repayment. She noted that the lending platform is in fact an unregulated financial intermediary that has the right to refuse users the withdrawal of financial assets.

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