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Celsius’ Debtor List Now Includes ‘EquitiesFirst’ Owing $439 Million

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Celsius Makes Strong Comeback, Total Debt Stands At Only $59 Million
  • Bankruptcy proceedings have been halted, and client funds have been frozen.
  • EquitiesFirst seems to be a creditor of crypto hedge firm Three Arrows Capital (3AC).

EquitiesFirst, a single counterparty that owes Celsius $439 million, has been making monthly payments of $5 million to clear its debt with the company. Due to EquitiesFirst’s inability to repay the assets it had supplied as security for a loan, Celsius was made an unintentional creditor.

Celsius’ debtor list now includes EquitiesFirst. The investment business owes Celsius $439 million, or more exactly $361 million in US dollars and 3,765 BTC, according to a recent Financial Times report.

In the crypto lending industry, Celsius is sometimes referred to as a “CeFi” platform, which refers to a central organization that uses the yield prospects offered by decentralized finance (DeFi) protocols for the benefit of its consumers. Extreme market circumstances, it said, were to blame for recent liquidity problems at the corporation. Bankruptcy proceedings have been halted, and client funds have been frozen.

EquitiesFirst originally loaned Celsius money in 2019 against collateral in the form of cryptocurrencies, Mashinsky alleged in the document. However, when the company attempted to repay its debts in order to recover its collateral, EquitiesFirst notified them that the collateral could not be returned immediately.

Celsius became EquitiesFirst’s creditor instead of paying it money since the loan was overcollateralized. EquitiesFirst made monthly payments of $5 million to reduce the original debt of $509 million to $439 million. A court filing shows Celsius owes $5.5 billion in debts and has assets worth only $4.3 billion.

EquitiesFirst seems to be a creditor of crypto hedge firm Three Arrows Capital (3AC). An EquitiesFirst lawyer submitted a court filing and withdrew it earlier this week in connection with the bankruptcy of 3AC. In other words, Celsius was possibly exposed to 3AC in a way that made them vulnerable to the subsequent collapse of the multi-billion dollar company.

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