Report: Equitiesfirst Named as Mystery Debtor to Celsius, $439 Million Owed to Crypto Lender
Insolvencies, liquidations and bankruptcies have been hot topics in the crypto community over the past few weeks. Three well-known crypto companies have filed bankruptcy protection. These include the digital currency exchange Voyager Digital and the crypto hedge fund Three Arrows Capital (3AC).. Celsius filed bankruptcy on July 13, 2022. This was 31 days after the company stopped making withdrawals.
speculation during June 2nd stated that Celsius had funds in specific decentralized finance protocols (defi) that required immediate adjustment or that significant collateral would be liquidated. A few days prior to Celsius filing for bankruptcy, the company’s wallets transferred millions USDC at different times to pay down Compound and Aave loans.
The filing that Celsius filed for bankruptcy protection stated that he was owed large amounts of money. The Financial Times (FT), July 15, reported that Equitiesfirst had been revealed as the mysterious debtor to Celsius’s troubled crypto company. Two people familiar with the matter claim that Equitiesfirst is the borrower who owes $439 million to the crypto lender.
Equitiesfirst was founded in 2002 and specializes in asset-backed financing. According to its website, Equitiesfirst was established in 2002. Equitiesfirst is a stock management company, but it also deals with cryptocurrencies. Johnny Heng, the managing director and chief of Equitiesfirst Singapore, spoke about cryptocurrency in April 2022.
Heng said that while we used to be pure equity, six years ago, Equitiesfirst began to offer loans against crypto currency. This activity has really taken off in the last year or so. Equitiesfirst spoke with FT and stated that they are in ongoing discussions with their client. Both parties have agreed to extend their obligations.
CEL token investors from celsius network tried to shortenthe native token of the company before it filed for bankruptcy. CEL lost 58% against the U.S. Dollar after the bankruptcy filing before rebounding. According to statistics, CEL gained over 30% in the past 30 days despite CEL market volatility.