According to recent court records, cryptocurrency lender Celsius is rapidly running out of money.
According to forecasts submitted yesterday by the legal firm Kirkland & Ellis, the lender might run out of money by October. Additionally, the company owes depositors $2.8 billion more in crypto than it presently has.
After being forced to halt withdrawals due to spiraling crypto prices, Celsius filed for Chapter 11 bankruptcy last month. Since then, it has been through restructuring and looking into ways to pay creditors. Early on in the process, paperwork revealed that the company’s balance sheet had a $1.2 billion hole in it, with assets totaling $4.3 billion and liabilities totaling $5.5 billion.
The company’s financial situation now seems to have gotten worse.
As of August, it still had a cash balance of around $130 million, but that will exhaust by the end of the year. By the end of October, according to Kirkland & Ellis’ projection, the company will have lost close to $40 million due to all current operating, capital, and restructuring costs.
However, its crypto holdings are where the bigger gap is. In the statement, the company disclosed huge discrepancies in its holdings of assets and liabilities, including a $2.8 billion hole in its crypto liabilities. With $2.5 billion in BTC liabilities, the company now has $348 million in BTC on hand. Between liabilities and available ETH, there is a spread of roughly $1 billion.
The gap between liabilities and available USDC is less than $700 million. Liabilities for WBTC and stETH are negligible, and holdings of $557 million and $683 million, respectively, make up some of the difference. After expenses, it also has an extra $438 million in its native CEL token. Additionally, the lender has a $625 million shortfall in other currencies.