- Celsius Network’s bankruptcy filings mentions a secret debtor.
- Two people close to the matter believe the debtor to be EquitiesFirst.
- EquitiesFirst owes $439 million to his company, as per a court filing.
The bankruptcy filings of Celsius Network mentions a mysterious debtor, EquitiesFirst. EquitiesFirst is a specialist finance firm famous for providing funds to executives secured against their stock holdings.In a court filing on Thursday, Alex Mashinsky, chief executive at Celsius, noted that an unknown “private lending platform” owed $439 million to his company. According to the sources close to the matter, EquitiesFirst is that platform.
In that respect, EquitiesFirst owes a major portion of Celsius’s assets. Thousands of Celsius customers will be depending on these assets. And expecting some of its to recover.In the filing, Mashinsky revealed to the bankruptcy court that his company has liabilities of $5.5bn against assets worth $4.3 billion. The company owes the majority of liabilities to its customers.
Meanwhile EquitiesFirst stated that it is holding discussion with its client and both the parties have agreed upon extending the obligations. According to the court filling the deal in which Celsius was the purchaser had led to $439mn debt owed by EquitiesFirst. However the name of the company is not mentioned in the filling. Mashinsky said there was a “lack of institutional lending available to cryptocurrency companies” at the time.
In 2019, Celsius borrowed from EquitiesFirst for the first time. The court filing mentions the borrowing were done to “support its operations’ ‘ on a secured basis. Mashinsky said at that time there was a lack of institutional lending for crypto firms.
The filling further noted that Celsius retrieve the collateral it had pledged as security in order to repay one of its loans in July 2021. It was then revealed that the lender was unable couldn’t return the Company’s collateral on a timely basis. Hence Celsius become the lender from a borrower, owning $509 million on an unsecured basis by EquitiesFirst. Since September last year, the debt was slowly paid. Currently, the repayments are at $5 million a month. Since September last year, the debt was slowly paid. As per the filling, the 439 million is consist of $361 million in cash and 3,765 BTC.
Source: https://www.thecoinrepublic.com/2022/07/16/celsius-secret-debtor-is-equitiesfirst-reveals-sources/