Crypto Celsius Company Successfully Pays IDR 4.5 Trillion Debt

Crypto firm Celsius has started paying USDC stablecoin debt worth about $78.1 million to lending platform Aave, according to tracking company Etherscan. In addition, Celsius also paid USD 35 million in stablecoin DAI on the Compound platform.

Report from Yahoo Finance, Wednesday (1-7-2022), amid the recent drop in cryptocurrency prices, Celsius has frozen withdrawals since June and has recently begun paying down its debts to release collateral held in decentralized areas. financing applications has been placed.

On the other hand, another affected crypto company, Voyager Digital Ltd. and Three Arrows Capital, which recently filed for bankruptcy. As of July 1, Celsius’s digital wallet has repaid more than $300 million in debt to various platforms, including Maker, according to data from Nansen and Etherscan.

Celsius still has about $120 million in debt in Aave and Compound, according to the Zapper tracker. On this decentralized lending platform, collateral is automatically liquidated under certain circumstances unless it is repaid.

Celsius’s source of funding to repay the loan remains unclear. The company also did not respond to a request for comment. Celsius promised people who gave their digital coins more than 18 percent interest on their assets.

The ailing lender has provided limited guidance since the withdrawal of withdrawals on June 12. On June 30, the company said it was exploring options such as strategic deals and debt restructuring.

Previously, Crypto lending firm Celsius was sued last week by former investment manager Jason Stone, as the company is still depressed amid falling cryptocurrency prices.

The lawsuit in New York state court comes after Celsius, which offers customers interest in keeping their cryptocurrencies, was forced to stop withdrawals for its users due to a liquidity crisis.

Celsius was also recently found to have artificially inflated the price of its own digital coins, failed to hedge against risk and engaged in activities that constituted fraud, the lawsuit said.

Celsius acts like a bank because it offers customers returns, sometimes as high as 19 percent, when they deposit their crypto with the company.

The company then lends the crypto to other people who are willing to pay high interest rates to borrow. He then tries to put the money in his pocket to return the proceeds to the customer.

Stone founded a company called KeyFi that specializes in crypto trading strategies.

Celsius and KeyFi struck a “handshake deal” whereby the latter company would “manage billions of dollars in customer crypto deposits in exchange for a share of the profits made from those crypto deposits,” the lawsuit alleges.

“There was no formal written agreement between the parties,” the lawsuit said.

As of August 2020, according to the lawsuit, Celsius began “transferring hundreds of millions of dollars in crypto assets” to Stone and his team. Celsius has set up a wallet on the Ethereum blockchain called “0xb1”. That’s where the company sent the assets that Stone would use, the lawsuit alleges.

Celsius and Stone decided to engage in a crypto trading strategy that requires an effective hedging strategy to manage risk and guard against fluctuations in the price of certain digital coins.

He added that Celsius has a full picture of what KeyFi’s trading activity is doing.

Stone claims that Celsius executives have “repeatedly assured” that the company had entered into necessary hedging transactions to ensure that fluctuations in the price of certain crypto assets would not materially and negatively impact the company or its ability to attract depositors. Pay. Stone and his team rely on this representation.

“But those promises are lies. Despite repeated assurances, Celsius has failed to implement a basic risk management strategy to protect against the risk of price volatility inherent in many of the investment strategies it employs,” the lawsuit alleges.

Stone claimed there had been “several incidents” where Celsius’s “failure to conduct basic accounting” put customers’ money at risk.

Other allegations revolve around Celsius’s digital currency, the CEL coin. It is the Celsius token itself. Celsius says that if users receive their interest payments in CEL, they can earn higher interest than those who don’t.