Recent court filings from law firm Kirkland & Ellis show that crypto lending platform Celsius has US$2.8 billion in crypto liabilities. The documents suggest that the crypto lender might run out of operational cash by October.

See related article: Celsius on thin ice well before its bankruptcy: CNBC report

Fast facts

  • Celsius filed for Chapter 11 bankruptcy last month after the spiraling crypto market forced the lender to freeze withdrawals. Since then, the platform has hired restructuring lawyers from Kirkland & Ellis LLP to explore financing options.
  • While earlier documents suggested that Celsius has a US$1.2 billion gap in its balance sheet, the crypto lender’s financial situation has since become worse.
  • According to the latest court filings, Celsius has around US$130 million in cash balance as of August. Yet, Kirkland & Ellis projects that Celsius will have nearly US$40 million in deficit by the end of October.
  • The filings showed an even greater gap of US$2.8 billion in crypto liabilities. Celsius currently holds US$348 million in BTC, with US$2.5 billion in BTC liabilities. The crypto lender also has a US$1 billion gap in ETH liabilities, nearly US$700 million in USDC liabilities, and a gap of US$625 million in other cryptocurrencies.
  • The documents were filed ahead of the firm’s second day hearing scheduled for Tuesday, 2 p.m. EST. A creditor meeting is scheduled to take place on Aug. 19.

See related article: Celsius bankruptcy deepens chill over crypto sector