Celsius Would Rather Lose $6 Billion Bailout Than Disclosing Its Financial Records, Investor Says

Celsius was almost forced to file for bankruptcy because of lack of liquidity. However, it has been able to repay several million dollars of debts. This has raised many conjectures about the source of its funds.

Simon Dixon, the CEO of BnkToTheFuture online investment community, stated that Celsius had lost $6 Billion in liquidity assistance from potential investors due to its refusal of disclosing its financial records.

Celsius values its confidentiality more than its stability in these difficult times.

Privacy vs. Stability

Dixon stated that he advised Celsius to use Voyager Digital, a crypto trading and lending platform which filed for bankruptcy voluntarily two days ago in order to restructure the business and minimize losses to its customers.

Larsson ignored Dixon’s advice and invested millions in the company. Celsius chose to do something different, and Dixon speculated that there was more to Celsius’s decision to reject such an attractive deal.

“There’s nothing else happening that would make it impossible to pursue [a lucrative round] of investment,”

According to experts, Celsius may have caused financial problems for its customers. However, Celsius continues to implement its plans to improve its liquidity and avoid bankruptcy. The platform has made it impossible for users to withdraw money from the platform since last month. Many investors held loans in BTC were surprised by this situation, which caused a drop in the price Celsius’ native token $CEL.

When Celsius stopped withdrawing money, users were liquidated. Source: Youtube

How did Celsius repay over $440 million in debt?

Today, Celsius made an $81.6 million payment towards Aave. This reduced its debt from $90 million to $8.5 million. This allowed Celsius to recover the 400,000 staked Ethereum (stETH), it had previously deposited as collateral.

The company also paid Maker the entire amount of a previous loan for 23,000 WBTC. This would have been around $440m. It was close to the liquidation threshold at the time that bitcoin prices dropped to close to $17600.

All these payments have helped to reduce its total collateral debts to all platforms to $8.5 million for Aave, and $50 million for Compound. This debt could be paid off by Celsius at $227 million.

The fear that Celsius’ investors have about Celsius could turn into uncertainty if the company is not more transparent with its actions. Uncertainty in business isn’t necessarily good news. It is the second word of the acronym FUD.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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