- Celsius bleeds from $25 billion to $167 million.
- According to the bankruptcy filings, Celsius will pay its users around $4.7 billion.
- The firm has a $1.2 billion deficit on its balance sheet.
In this week’s reports, bankruptcy filings of Celsius have surprised no one. The digital lender has been in hot water for some time.
CNBC has tweeted that the major cryptocurrency has collapsed and has dragged many investors down with it.
Celsius, once a high-flying digital lender, has filed for Chapter 11 bankruptcy protection. The company had $25 billion in assets just last year, but according to the filings, it will pay its users around $4.7 billion. The platform has incurred all-time lows of $ 167million.
Celsius’s problems began last year when the company ran into trouble with its business model. It had been relying on income from interest payments on loans to users, but when the pandemic hit, many users stopped making payments.
The company was forced to write off billions of dollars in loans, and its share price collapsed.
Celsius owes its users around $4.7 billion, according to the bankruptcy filings. It also has a $1.2 billion deficit on its balance sheet.
Celsius is not the only digital lender to have run into trouble recently. SoFi, another major player in space, has also been struggling. The company laid off hundreds of employees last year and has been looking for a buyer.
It is clear that the digital lending space is in trouble. With so many companies running into difficulties, it is hard to see how the industry will survive.
Celsius’s problems are a warning to all investors in digital lenders. With so many companies running into trouble, it is becoming clear that this is an industry in crisis.This comes after regulators conduct a multistate on celsius over complaints about the interest rates on their products.
Recommended News :
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
