Troubled Crypto Lender Celsius Repays $113 Million of Loans, Can It Avoid Bankruptcy?

Troubled crypto lender Celsius has been attempting each bit to repay pending loans. As per Bloomberg, Celsius repaid an extra $113 million of mortgage on Monday, July 11.

On Monday, Celsius repaid $78 million in USDC stablecoin to decentralized lending platform Aave, as per information on Etherscan. Equally, it additionally repaid $35 million price of DAI stablecoin on Compound. For the reason that begin of this month, crypto wallets belonging to Celsius have paid greater than $300 million in loans to completely different platforms.

As per the tracker on Zapper, Celsius nonetheless has a complete of $120 million in excellent debt on Aave and Compound. All these decentralized lending platforms have some collateral put ahead by Celsius on the time of taking loans. Nevertheless, this collateral can get routinely liquidated in sure circumstances when Celsius fails to repay the quantity.

Celsius froze person withdrawals final month in June and has been engaged on paying off its money owed. As reported by Bloomberg:

Celsius’s sources of funding to pay again the loans are unclear. The corporate didn’t reply to a request for remark. The distressed lender has offered restricted steering since halting withdrawals on June 12. On June 30, the corporate stated it’s exploring choices equivalent to “strategic transactions in addition to a restructuring of our liabilities.”

Can Celsius Networks Keep away from Chapter?

Final Sunday, July 10, Wall Avenue Journal reported that Celsius has employed new attorneys for restructuring recommendation. Citing individuals aware of the matter, WSJ reported:

Celsius introduced on attorneys from Kirkland & Ellis LLP to advise on choices together with a chapter submitting, changing the corporate’s prior lead restructuring counsel.

Whereas different troubled crypto lenders like Voyager Digital and Three Arrows Capital have filed for chapter, Celsius shouldn’t be a lot prepared to take this route. Celsius stated that lots of its retail shoppers need to keep away from the proceedings that observe after declaring chapter. As Celsius continues to make recent funds, will probably be fascinating to see if it may possibly keep away from chapter.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Expertise and Cryptocurrency markets. He’s repeatedly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

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