Crypto lending platform Celsius Network owes $439 million to EquitiesFirst, a private financial firm, the Financial Times has reported citing informed sources.
Celsius and some of its subsidiaries filed for bankruptcy last Thursday in a New York court. According to the documents, as of July 13, the platform's liabilities exceeded assets on the balance sheet by nearly $1.2 billion.
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The petition also mentions a "private lending platform" that Celsius used to fund its operations from September 2019 to February 2021. It must be noted that the collateral for the loans was crypto.
According to the documents, in July last year, Celsius attempted to repay one of its loans and return the collateral, however, "the lender was unable to return the company's assets in a timely manner."