After Voyager digital now Celsius files for Bankruptcy :

Celsius network, a company mainly known for providing crypto lending services, has filed for bankruptcy this week ( on July 14).

As per the details mentioned in the filing, the Celsius network has total liabilities of $5.5 Billion of which it owes $4.7 billion to it’s users. The main headache for the company is that it has assets worth $4.3 Billion. So, Celsius now has straight deficit of $1.2 Billion in its balance sheet. The company had earlier repaid its loans to some of the DeFi lending protocols – Aave, Compound.

Celsius has large portion of it’s holdings is in its own token, which has underperformed just like the other digital tokens.

Image Credit : Celsius website

Celsius was fintech company based out of New Jersey, USA. Started in 2017 to provide crypto lending services, it had tremendous run during the pandemic time jus like Voyager and BlockFi.

Celsius had halted all withdrawals from its platform in June citing market volatility and also it reduced it’s workforce by laying-off over 500 employees.

Many finance experts and analysts have warned investors about a situation like this earlier. Having a unregulated private firm to manage assets worth of millions of dollar is always risky. And the worrying thing is that few of the hedge fund companies are also invested in these crypto lending firms and they will affected by this.

Bitcoin supporters have always argued that digital currency is created tackle inflation, but as the shares of big tech companies dipped, so has Bitcoin’s price.

Earlier this month, the Voyager digital had filed for bankruptcy protection, after suffering losses from market volatility and Three Arrows Capital (3Ac) defaulting their loan.

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