Since Celsior suspended withdrawals on June 12, the lender’s financial difficulties have attracted attention. A month later, Celsior filed for bankruptcy in the United States utilizing Chapter 11 proceedings. Two days after the bankruptcy filing, a report revealed that two people familiar with the matter claimed that the personal lending platform, which owed Celsius $439 million, was Equity First.
FT sources claim that the private lending platform that owes Celsius $439 million is Equitiesfirst
Bankruptcy, liquidation, and insolvency have been very hot topics in the crypto world over the past few weeks. Three well-known crypto companies, including digital currency exchange Voyager Digital, crypto lender Celsius, and crypto hedge fund Three Arrows Capital (3AC), have filed for bankruptcy protection.Celsius has filed for bankruptcy protection on July 13, 2022, or 31 days after the company has withdrawn filed for bankruptcy 31 days after it froze.
Prior to the July bankruptcy filing, there was there was speculation in the second week of June that Celsior had funds locked into certain decentralized financial (defi) protocols and that immediate adjustments were needed or that significant collateral would be liquidated. A few days before Celsius filed for bankruptcy, the company’s wallet was reportedly forwarded transferred millions of US dollars in coins (USDC). at different times to pay off the loans on the compound and abe.
When Celsius filed for bankruptcy protection, the application detailed that Celsius owed a large amount of money; on July 15, the Financial Times (FT)reported reported that “Equitiesfirst [has been] revealed as [the] mysterious debtor to troubled crypto firm Celsius.” The report claimed that two people familiar with the matter disclosed that Equitiesfirst is the ostensible borrower that owes the crypto lender $439 million.
Founded in 2002, Equitiesfirst is an investment firm “specializing in long-term asset-backed finance,” according to its website.Equitiesfirst manages equities, but has also been dealing in select cryptocurrencies since 2016. Johnny Heng, managing director and head of Equitiesfirst Singapore, spoke about cryptocurrencies in April 2022.
“We were a pure equity until some six years ago, we started offering loans against cryptocurrencies as well, and that activity has really taken off (in the past one to two years),” Heng told hubbis.com In an interview with the FT, a spokesperson for Equities First said, ” Equities First is in (ongoing) conversations with our client and both parties have agreed to extend the obligation.”
Meanwhile, Celsior Network (CEL) token investors attempted a short squeezeLong before the company filed for bankruptcy, it attempted a short squeeze on its native tokensHowever, after the bankruptcy filing, CEL fell 58% against the U.S. dollar before rebounding, according to statistics recorded on July 16, 2022,despite volatility of the CEL market , crypto assets have increased by more than 30% over the past 30 days.
What do you think about reports that EquityFirst has been revealed as a mystery debtor owing millions to Celsius? Let us know what you think about this subject in the comments section below.
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