MEXCBankruptcy Ridden Celsius Drops New Update Over Outstanding Loans
Celsius, bankruptcy ridden digital asset lending firm is reportedly not trying to impose payment obligations for outstanding loans. Earlier, Alex Mashinsky, CEO of Celsius resigned from his position. However, he will still be holding the position of director of the firm.
Celsius new update for creditors
As per reports, Celsius during its Chapter 11 proceedings mentioned that it is not seeking to apply payment responsibility for outstanding loans. This includes borrowers not needing to repay the loans.
It added that no penalties or interest will be evaluated post loan maturity in the recent filings. However, a digital asset lending firm filed for bankruptcy back in July. It holds assets and liabilities of around $10 billion. While it has more than 100k creditors.
However, Celsius listed a deficit of around $1.19 billion on its balance sheet. It mentioned around 23K outstanding loans to retail borrowers. These loans cumulative worth around $411 million. As of July 13, 2022, loans are backed by collateral with digital assets whose market value stands around $765.5 million.
This bankruptcy filing came at a time when the global crypto industry was in a historic collapse. This debacle brought down big digital asset firms like Three Arrows Capital and Voyager Digital.
Are shareholders going against crypto lender?
Earlier, Coingape reported that Celsius’s legal trouble got intense amid this crypto downturn. Its shareholders filed a motion in the court to form a committee so that they can get the requisite representation.
It highlighted that the unsecured creditors’ group wants to increase the value of its customers. As of now, there is no single stakeholder who represents Celsius on the table. There is no one presenting the interests of the equity holders.
On the market side, the Celsius token has turned out to be one of the biggest losers over the last 24 hours. Its price is down by around 6%. CEL is trading at an average price of $1.37, at the press time.
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days
- €648 Billion Nordea To Allow Customers to Trade Bitcoin-Linked ETFs
- Uphold Joins Gemini, Relaunches XRP Debit Card Following SEC Lawsuit Resolution
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
- Ethereum Price Flips BTC in Strategy Shift, Eyes $4500 Level
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
