Celsius bankruptcy filings show a company in deep trouble

cointelegraph.com:

Celsius’ bankruptcy filing has revealed some unpleasant surprises about the state of the crypto lending platform, including a $1.2 billion deficit formed largely as a result of user deposits. 

A chapter 11 bankruptcy document signed off by Celsius CEO Alex Mashinsky on July 14 has revealed that the company holds around $4.3 billion in assets against $5.5 billion in liabilities, representing a $1.2 billion deficit.

User deposits made up the majority of liabilities at $4.72 billion, while Celsius' assets include CEL tokens as assets valued at $600 million, mining assets worth $720 million, and $1.75 billion in crypto assets.  

The value of the CEL tokens has drawn suspicion from some in the crypto community however, as the entire market cap for CEL tokes is only $321 million, according to CoinGecko data.

Among the crypto assets are 410,421 Lido Staked ETH (stETH) tokens worth about $479 million which are generating 5% APY, though the tokens themselves cannot be redeemed for Ether (ETH) until the Ethereum network transitions into Proof-of-Stake consensus in the Merge.

Celsius CEO Alex Mashinsky signed a document stating that the company could also sell Bitcoin (BTC) mined by its Celsius Mining Bitcoin mining operation to “generate sufficient assets” to repay at least one of its loans and provide revenue for the company in the future. The company projects that it could generate about 15,000 BTC through 2023.

Swan Bitcoin founder Cory Klippstein has deplored both Celsius and Voyager’s recent decision to file for Chapter 11 protection rather than the Securities Investor Protection Act (SIPA).

In a July 14 tweet, Klippstein said filing under SIPA would have shifted ownership of the firm’s assets over to customers, which would have at