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Saturday, September 24, 2022

The Recent News of the Chapter 11 Bankruptcy Of Celsius Can Send The Company Into Huge Trouble

Celsius has been one of the best crypto lending companies in the last few years. However, the company, with 1.2billion dollars the deficit, is living on the edge of bankruptcy.

The company was a renowned one, and the news of its bankruptcy of the company has brought a few unpleasant surprises. They paused their transactions on the platform after the company’s CEO signed the chapter 11 bankruptcy. Celsius, the CEO, has revealed that the company has 4.3billion dollars worth of assets and 5.5billion dollars worth of liability. Among the liabilities, the majority of it was user deposits. Where the assets are CEL tokens and mining assets cover up half the valuation of the assets.

Celsius To Be Dissolved In The Market After The Chapter 11 Bankruptcy? 

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Among the assets are Lido Staked ETH tokens worth close to $479 million. The company’s CEO, Alex Mashinsky has signed documents stating that the company might sell its bitcoin mines to generate the assets to repay the debts. The company has also recently appointed some fresh faces on the board to come back from the situation.

Under the recent bankruptcy proceedings against Celsius, the company claimed complete ownership of its assets. However, according to the law, a failed firm should be transferred to the accounts of other firms or must be dissolved to send its money back to its investors.

Frances Coppola, a crypto enthusiast, blogger, and economist, has shared some more bad news explaining why according to her, Celsius may not be back on its feet again despite the company’s claims to be back stronger.

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Even though CEL has fallen since last January, investors all over the country hope the company will bring their money back as they fight and win against bankruptcy.  

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