According to the bankruptcy filings for the company, Celsius CEO Alex Mashinsky acknowledged that there was a $1.2 billion hole in the company’s balance sheet. It was speculated that FTX, a crypto exchange, turned down the opportunity to purchase Celsius because of the significant hole in its balance sheet. The troubled crypto lending company has liabilities of $5.5 billion and assets worth $4.3 billion.
Through a $750 million credit line, the business funneled a sizeable portion of its clients’ money into its own mining activity. Additionally, Celsius obtained a $108 million loan from the FTX exchange, which was backed by assets totaling $403 million. The report also reveals that instead of raising $750 million in 2021, the business only managed to raise $600 million. The business recently requested bankruptcy protection.