A bankrupt cryptocurrency platform «lost» more than $ 1 billion

Cryptocurrency platform Celsius, which has announced its own bankruptcy, has reported that its liabilities exceeded its assets by almost $ 1.2 billion.

According to the data published by Celsius Network, the company has assets of $ 4.3 billion, and its liabilities to customers and creditors amount to $ 5.5 billion. Accordingly, the hole in the bankrupt company’s balance sheet is $ 1.2 billion.

Alex Mashinsky, the company’s CEO, who recently tried to flee to Israel, explained that the company’s problems were caused by an «unfortunate combination of circumstances»: unprofitable investments, unfavorable market conditions, and the inability of management to manage the rapid growth of the platform. However, Mashinsky predicts a positive future for the company and its investors: «I am confident that in the future we will rebuild the company and this period will be a defining one in the history of Celsius. We will help our clients and ensure a stable future for the platform.»

At the end of June, it was reported that the platform’s assets to equity ratio was significantly different from similar credit organizations: Celsius had 19 times less assets than it needed to pay out. A few days ago, a former Celsius contractor accused the company of defrauding customers and manipulating depositors' funds.