- 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.
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