Two unidentified sources, troubled cryptocurrency loan company Celsius Network is owed $439 million by Indianapolis-based private lending platform EquitiesFirst.
In 2016, the 2002-established company EquitiesFirst started providing crypto-collateralized loans.
EquityFirst informed that it was in constant contact with its client and that both parties had decided to prolong their duties.
In 2019, Celsius started taking out loans from EquitiesFirst. According to the report, two years after being asked to pay back a loan by EquitiesFirst in order for the collateralized cryptocurrency to be returned, Celsius was informed that it could not be given in a “timely basis.”
EquitiesFirst is paying back $5 million a month at the moment; the total debt is made up of $361 million in cash and 3,765 bitcoin (BTC), which are currently worth close to $79 million.
The debt was first made explicit in Celsius’ bankruptcy petition on Thursday, which also disclosed that the company has $5.5 billion in liabilities and $4.3 billion in assets.
Given that $600 million of Celsius’ assets are locked up in the now-empty CEL coin, which is trading at $0.80 despite reaching an all-time high of $8.04 last June, the gap could grow.
After experiencing liquidity challenges due to “extreme market conditions,” Celsius froze withdrawals in June.