Equitiesfirst Named Celsius Mystery Debtor, $439 Million Owed To Crypto Lender
Since Celsius suspended withdrawals on June 12, the company has come under scrutiny due to the lender’s financial difficulties. A month later, Celsius filed for bankruptcy in the United States leveraging the Chapter 11 process. Two days after the bankruptcy filing, a report revealed that two people familiar with the matter allege that the private lending platform which must $439 million Celsius is Equitiesfirst.
FT Sources alleges the private lending platform that owes Celsius $439m is Equitiesfirst
Over the past few weeks, bankruptcies, liquidations, and insolvencies have been a very hot topic in the crypto world. Three well-known crypto companies have filed for bankruptcy, including digital currency exchange Voyager Digital, crypto lender Celsius, and crypto hedge fund Three Arrows Capital (3AC). Celsius filed for bankruptcy on July 13, 2022, 31 days after the company froze withdrawals.
Before filing for bankruptcy in July, there was speculation in the second week of June, who said Celsius had funds tied up in specific decentralized finance (defi) protocols that needed immediate adjustment or significant collateral would be liquidated. Days before Celsius filed for bankruptcy, the company’s portfolios would have transferred million coins usd (USDC) to different times to repay loans to Compound and Aave.
When Celsius filed for bankruptcy, the filing stated that Celsius owed a large sum of money. On July 15, the Financial Times (FT) reported that “Equityfirst [has been] revealed as [the] mysterious debtor of troubled crypto firm Celsius. The report claims that two people familiar with the matter revealed that Equitiesfirst is the alleged borrower who owes the crypto lender $439 million.
Founded in 2002, Equitiesfirst is an investment firm that “specializes in long-term asset-backed financing,” according to the firm’s website. While Equitiesfirst manages stocks, it has also been dealing in some cryptocurrencies since 2016. Managing Director and Head of Equitiesfirst Singapore, Johnny Heng, spoke about cryptocurrencies in April 2022.
“We were pure equities, until about six years ago we also started offering loans against cryptocurrency, and that business really took off. [in] for a year or two,” Heng said. hubbis.com in an interview. Speaking to FT, an Equitiesfirst spokesperson said: “Equitiesfirst is in [an] ongoing conversation with our client and both parties have agreed to extend our obligations. »
Meanwhile, investors in celsius network tokens (CEL) tried to press short the native token of the company long before the company filed for bankruptcy. However, after filing for bankruptcy, CEL fell 58% against the US dollar before bouncing back. Statistics recorded on July 16, 2022 indicate that despite CEL market volatilitythe crypto asset has gained over 30% in the past 30 days.
What do you think of the report that says Equitiesfirst has been revealed as the mysterious debtor who owes millions Celsius? Let us know what you think about this topic in the comments section below.
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