Crypto lender Celsius Network unveils losses of $1.19 billion: Celsius Network has shown a loss of $1.19 billion on its balance sheet in a bankruptcy court filing on Thursday, a day after the cryptocurrency lender filed it.
New Jersey-based Celsius last month halted withdrawals, citing “excessive” market conditions, cutting off access to savings for individual investors.
Crypto lender Celsius Network unveils losses of $1.19 billion
Celsius also said it had $40 million in claims against Singapore-based Three Arrows Capital, a crypto hedge fund that filed for bankruptcy earlier this month.
As of July 13, Crypto had approximately 23,000 outstanding loans to retail borrowers, totaling $411 million, backed by collateral with a market cap of $765.5 million in digital assets.
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Crypto lenders boomed during the COVID-19 pandemic, attracting depositors with high-interest rates and easy access to loans rarely offered by traditional banks. They mostly distributed tokens to institutional investors, profiting from the difference.
But the lenders’ business model came under scrutiny following a sharp crypto market sell-off in May due to the collapse of major tokens TeraUSD and Luna.
Another US crypto lender, Voyager Digital Ltd, filed for bankruptcy this month after suspending withdrawals and deposits. A smaller lender, Singapore’s Wald, also halted withdrawals this month.
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