Celsius is having a hard time in crypto winter, but the company still believes that security is worth more than a billion dollars in investment.
Celsius managed to pay off several million dollars in debts after nearly filing for bankruptcy due to lack of liquidity, sparking all kinds of conjecture about the origin of his funds.
On June 12, Simon Dixon, CEO of online investment community BnkToTheFuture, said in an interview with Anders Larsson on YouTube that Celsius lost $6 billion in liquidity support from investors. potential investor for refusing to disclose his financial records.
So in these challenging times, Celsius has valued its security more than its stability.
Privacy and Stability
Dixon said he advised C to do as Voyager Digital, a crypto lending and trading platform, voluntarily filed for bankruptcy two days ago to restructure the company and minimize damage to customers.
However, Larsson chose to ignore Dixon’s advice, despite having invested tens of millions of dollars in the company. Instead, Celsius decided to act differently, leading Dixon to speculate that something more important was happening behind the scenes for Celsius to turn down such a tempting deal.
“The only reason you wouldn’t pursue [a lucrative round] is that something else is going on,”
Although Celsius may have hurt its customers according to industry reports, the company continues to implement plans to increase liquidity and prevent possible bankruptcy. Since last month, the platform has prevented users from withdrawing funds until further notice. This situation surprised many investors who held loans in BTC and caused a drop in the price of Celsius’ native token, $CEL.
How did C pay off more than $440 million in debt?
Today, Celsius completed an $81.6 million payment to Aave, reducing the company’s debt from about $90 million to less than $8.5 million. In this way, Celsius managed to recover the 400,000 staked ethereum (stETH) it had previously deposited as collateral.
Additionally, the company paid off its previous loan total with Maker of 23,000 WBTC, or about $440 million, an amount close to liquidation when the bitcoin price dropped to nearly $17,600.
Thanks to all these payments, its total mortgage debt for all platforms has dropped dramatically, to just $8.5 million for Aave and about $50 million for Compound – pay off this debt will return C$227 million dollars.
However, the fear surrounding Celsius investors could turn into uncertainty as the company refuses to be more transparent about its actions. And “uncertainty” in business isn’t really good news. After all, it is the second word in the acronym FUD.