Celsius Update! A “2B Gaping Hole”?

By ProCoinNews • June 30, 2022 10:03 pm • Comments

Hello friends!

We have a Celsius update for you!

First, let’s flashback because I think it will give a lot of context.

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On June 11, we were one of the first to break the story of the Celsius demise (alllllegedly) one day before it happened.

Here’s what we posted:

Turns out, thin-skinned Alex Mashinsky didn’t like that too much.

Turns out he was on Twitter (not too busy running the business or anything) and he personally responded to little old ProCoinNews, lecturing us with:  “don’t create FUD”.

Yes, really.

Take a look:

June 11.

June 11 and it was just a “vendor issue” that will be resolved soon.

He then responded to little old ProCoinNews AGAIN later that day saying all services were back up and it was “probably just an attack by the same people shorting CEL”:

This was one day before Celsius froze all funds.

Now we flash forward to today, after funds have been frozen for hundreds, or thousands, or millions of account holders with no real hope of getting them back.

Today, after going radio silent on Twitter, we got an update.

Here was the post from Celsius:

So…what did the update say?

We took a screenshot:

And if you cant’ read that, here’s the full text:

Across Celsius today, we are focused and working as quickly as we can to stabilize liquidity and operations, in order to be positioned to share more information with the community. We are operating with the entire community and all clients in mind as we work through these challenging times.

We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues. These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.

Our relationship with the community and our clients has been a source of pride for all team members at Celsius, and we will continue to share information with our customers as and when it becomes appropriate.

Celsius
For assistance, please connect with us Monday — Friday from 10am — 11pm EST at 1–866–463–5669, or send us a message

Basically, a bunch of gibberish.

A big “nothing burger”.

But then later today we got the REAL update….

No, not from Celsius.

We got it from The Block.

Take a look:

It turns out, FTX was interested in acquiring Celsius until it reviewed the financials and found a, quote: “2 billion dollar gaping hole”.

Oh my!

From TheBlock:

Crypto exchange operator FTX looked at making a deal with troubled crypto lender Celsius but ultimately walked away, two people with knowledge of the matter told The Block.

FTX began talks with Celsius about providing financial support or making an acquisition but decided against proceeding after looking at Celsius’s finances, the sources said. Celsius had a $2 billion hole in its balance sheet and FTX found the company difficult to deal with, one of the sources said.

Celsius did not respond to The Block’s request for comment.

Celsius has been fighting for survival since freezing all withdrawals on June 12, citing “extreme market conditions.” Clients’ funds have remained stuck ever since. Celsius claimed 1.7 million customers and around $12 billion in assets under management in May.

Amid its financial woes, Celsius has remained almost silent. Its last official update was issued on June 19, when the company said its objective “continues to be stabilizing our liquidity and operations. This process will take time.”

The Block reported recently that Celsius has appointed Wall Street giant Citigroup to advise on its financial options and the Wall Street Journal said the lender is working with restructuring consultants from advisory firm Alvarez & Marsal

Celsius is resisting a Chapter 11 bankruptcy filing — a recommendation from its lawyers — people with knowledge of the situation told The Block earlier this week. The firm has instead been seeking a show of support from users to help win the internal argument against its own legal advisors.

More here from the man himself, VERI’s Reggie Middleton:

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