Sign Up on MEXC
Beleaguered crypto lender Celsius continues its strategy to pay off outstanding Aave and Compound loans after it paid off its Maker loan last week. However, the company has now hired Kirkland & Ellis LLP, the law firm Voyager Digital hired for its bankruptcy filing. This has spurred fresh FUD among its customers, as it’s almost a month since withdrawals have been paused.
Celsius Remains Non-Transparent to the Community
Celsius on July 7 closed its outstanding Maker loan of 41.23 million DAI, paying off over $220 million in just a week. Thereafter, the crypto lender moved almost $500 million worth of wBTC to FTX.
Today, Celsius paid off 20 million USDC for its Aave loan, as reported by PeckShieldAlert. The company also paid off its Aave and Compound loans last week. According to Zapper.fi, the Celsius Wallets Combined shows an outstanding debt of $216 million, which has reduced from $258 million on July 7.
The outstanding Aave debt is $130 million worth USDC and $80,000 worth REN. Also, the outstanding Compound debt is $85 million in DAI. The crypto lender also has a $3 million fUSDC loan from Notional Finance, which is to be repaid by September 25.
Despite paying its loans, Celsius remains non-transparent in disclosing upcoming plans to its customers and shareholders. The company has now hired Kirkland & Ellis LLP to help assist in restructuring. The latest move has increased FUD, as it’s the same law firm that assisted Voyager Digital to file for bankruptcy. It could mean that Celsius is exploring a possible restructuring or bankruptcy filing.
Earlier, Akin Gump Strauss Hauer & Feld LLP and Citigroup recommended Celsius to file for bankruptcy. However, the firm continues to explore other options.
Meanwhile, KeyFi, a former assistant manager for Celsius, has filed a lawsuit against the crypto lender for running a Ponzi Scheme. It alleges Celsius of using customer deposits to inflate its CEL token prices, manipulating the broader crypto market.
Simon Dixon Claims Celsius is Hiding Numbers
Simon Dixon, CEO of BnkOfTheFuture, has become aggressive in the last few days as Celsius fails to share details under the non-disclosure agreement (NDA). He wants the company to share its financial position to be transparent with its customers and shareholders.
“There is a reason why BlockFi survived. They shared the numbers under NDA with the partners that could help. There is a reason why Bitfinex survived in 2016. They disclosed the issue & launched their plan. Celsius Network was too busy hiding numbers.”
- Breaking: Tether To Launch US-Based Stablecoin USAT With Bo Hines As CEO
- Breaking: Polymarket Partners With Chainlink To Boost Market Resolution Process
- Pi Network Upgrades Blockchain Protocol To Version 20 On Testnet As Pi Coin Price Jumps 3%
- Galaxy Digital Boosts Solana Holdings as FTX Estate Unstakes $45M SOL
- XRP Whales Dump 40M Coins Despite ETF Anticipation, Here’s Why
- Ethereum Price Eyes a 40% Surge as Morgan Stanley Shifts Fed Cuts Forecast
- Solana Price Forecast: Ford’s $1.65B Treasury Bet Sets Sights on $320
- Dogecoin Price Prediction as CleanCore Pushes Toward 1B DOGE Target- Is 92% Rally Ahead?
- SHIB Price Forecast as LEASH V2 Rollout Expands Cross-Chain — Is a 200% Rally Ahead?
- BNB Price Forecast as Binance–Franklin Templeton Deal Strengthens Path to $1,500
