{"id":248253,"date":"2022-07-14T02:21:41","date_gmt":"2022-07-14T01:21:41","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=248253"},"modified":"2022-07-15T15:03:48","modified_gmt":"2022-07-15T14:03:48","slug":"celsius-officially-declares-bankruptcy-after-paying-down-defi-loans","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/celsius-officially-declares-bankruptcy-after-paying-down-defi-loans\/","title":{"rendered":"Celsius officially declares bankruptcy after paying down DeFi loans"},"content":{"rendered":"

CNBC reported<\/a> Wednesday night that Celsius has informed: “state regulators that it's filing for bankruptcy ‘imminently.” The company will move toward chapter 11 bankruptcy as it struggles to deal with its liquidity issues.<\/p>\n

Early Thursday morning, Celsius<\/a> announced that they had, in fact, “initiated voluntary Chapter 11 proceedings.” In the press release, Celsius revealed it only holds $167 million in cash, which will be used to “support operations.” The voluntary liquidation aims to give the company:<\/p>\n

“the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.”<\/p><\/blockquote>\n

Earlier on Wednesday, investors had been given hope as Celsius paid down all of its DeFi loans to Compound. The total debt has been reduced from hundreds of millions to $0, unlocking around $200 million in collateral.<\/p>\n

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#Celsius<\/a> previously had most of their on-chain (DeFi) debt across these 3 positions (Maker wBTC Vault, Compound, and Aave).<\/p>\n

Their Maker & Compound debt has been reduced to $0, and they still owe ~$70k worth of REN in their Aave position. \ud83d\udc47 pic.twitter.com\/ipZGer2CuM<\/a><\/p>\n

— Josh (@CryptoWorldJosh) July 13, 2022<\/a><\/p><\/blockquote>\n