Report Shows Actual Celsius Debt Is More Than Previously Reported

A new report shows that the actual Celsius debt is 2.85 billion USD which is higher than the 1.2 billion USD the company had disclosed in its bankruptcy filing. The new figures indicate that the crypto financial firm has over six billion USD in liabilities, with its assets’ value standing slightly below four billion USD. Earlier, the company claimed they owned assets worth 4.3 billion USD, and liabilities totaled 5.5 billion USD resulting in a shortage of 1.2 billion USD.

Apart from the 2.85 billion USD deficit, the report indicated that the firm had lost more than half (62,853 BTC) of customer Bitcoin.

The firm has around 38 BTC out of 100,669 BTC. Sixty-four percent of its BTC shortage is in wrapped BTC. Celsius publicly admitted to bankruptcy mid-last month when it filed for Chapter 11. Its bankruptcy came when cryptocurrency companies found it hard to stay afloat after the Terra saga. The saga was followed by a crypto winter that worsened the situation.

Some in the crypto community also believed that the balance deficit in Celsius’ books was bigger than the 1.2 billion USD initially reported. Simon Dixon, for example, pointed out that the hole could be as large as three billion USD. He took to Twitter to share the new report indicating that the cryptocurrency firm made “up numbers with fake CEL valuations.”

Despite filing for bankruptcy, investors supported the platform’s native token (CEL) with hopes of recovering their funds. Since announcing a glaring hole in its balance sheet, the token has soared following a short squeeze initiated by the community. However, not everyone thinks they can be lucky to get their funds back. With a new report showing that the actual Celsius debt is more than previously reported, hopes of getting their money back get even slimmer.