Hindsight 20/20: The ‘Missed’ Signs Of The Celsius Insolvency
Celsius’ problems look like they have only just begun but there is a lot of data that shows that the current insolvency had been a long one in the making. As investors gnash their teeth about not seeing the issues fast enough, we take a look at these signs and why they may have been […]
Related News
On Monday, June 13, 2022, the crypto economy dropped below the $1 trillion region, as a great majority of crypto assets have lost between 10% to 25% during the last 24 hours. Meanwhile, the crypto community has been discussing the cryptocurrency lending application Celsius as rumors of insolvency have been swirling. On June 12, around 10:10 p.m. (ET) Celsius announced that it paused “all withdrawals, swaps, and transfers between accounts.” Celsius Pauses Lending Application’s Operations, Crypto Community Talks About a Possible Insolvency and Liquidations On Sunday....
Following the rumors and speculation surrounding the crypto lending firm Celsius, a Wall Street Journal report, quoting “people familiar with the matter,” explains that the company is reportedly hiring restructuring lawyers. Basically, hiring restructuring and insolvency attorneys is one of the first stages of fixing a company’s financial hardship by essentially attempting to avoid insolvency.
Report Says Celsius Is Looking for Help From Investors or a Well Known Restructuring Law Firm
On June 13, 2022, Bitcoin.com News reported on the lending platform....
Co-founder Kalin Metodiev stated that comparisons between Celsius, Voyager and Nexo are “very far from reality” and that the firm is focused on building in a sustainable way. Bankruptcy or insolvency is not in “Nexo’s reality” according to the crypto lending platform’s co-founder and managing partner, Kalin Metodiev. In an Ask Me Anything (AMA) video posted via YouTube on Oct. 4, founders and managing partners Metodiev and Antoni Trenchev addressed community questions and recent FUD-related rumors that Nexo could soon face insolvency issues. Responding to a question about the....
Though caught up in the web of the prevailing crypto bear market, Celsius adversely impacted the situation. The crypto lending platform has been struggling to break loose from the effect of insolvency. It suspended customers’ withdrawal from the platform to survive the storm. Also, it had previously hired some lawyers from Akin Gump Strauss Hauer […]
The crypto lender’s liquidation price on its Bitcoin loan has dropped to less than $5,000, according to DeFi industry data. Celsius (CEL) has repaid a substantial amount of its outstanding debt to Maker (MKR) protocol since the beginning of the month, signaling that the troubled crypto lending platform was trying to stave off a complete collapse amid credible rumors of insolvency. Since July 1, Celsius has repaid $142.8 million worth of Dai (DAI) stablecoins across four separate transactions, according to data from DeFi Explorer. The crypto lender still has $82 million in outstanding debt....