Celsius pays off maker loans, initiates financial restructuring
Troubled crypto lending platform Celsius has stopped all withdrawals, swaps and inter-account transfers on June 13th. The company declared this action “in the interest of the community” due to “extreme market conditions”.
A month later, Celsius initiated voluntary financial restructuring case in the US Bankruptcy Court of the Southern District of New York. The company aims to “stabilize the business and maximize value for all stakeholders,” hoping the restructuring process will put the company on its feet.
According to the press release, Celsius has $167 million in cash that will provide ample liquidity to support certain operations during the restructuring process.
At the same time, Celsius repaid $223 million in loans to the blockchain protocol maker to release $450 million in collateral.
Also centigrade reduced its outstanding debt to Aave and Compound from $258 million to $235 million. Now Celsius wallet owes Aave $150 million in USDC and $85 million compound in DAI. Should Celsius repay the loans in full, the crypto lender will theoretically be able to reclaim approximately $950 million in assets pledged against the debt and locked in the DeFi protocols as of now.
Just earlier the big cryptocurrency hedge fund Capital with three arrows has gone into liquidation, and crypto brokers Voyager Digital has initiated a financial restructuring. These two are other falling victims of the ongoing market volatility.