Celsius Lost Potential $6B Bailout After Refusing To Show Financials, Investor Says

The company has kept its balance sheet private while paying down DeFi debts

article-image

Source: Shutterstock

share

key takeaways

  • BnkToTheFuture CEO Simon Dixon advised Celsius to follow in Voyager’s footsteps by declaring bankruptcy and making its finances public
  • Celsius has paid a large portion of its debts to DeFi protocols Maker, Aave and Compound

Simon Dixon, CEO of prominent Celsius investor BnkToTheFuture, said this morning that he secured up to $6 billion in investor liquidity to solve Celsius’ liquidity woes — only to watch the deal fall apart after Celsius refused to show its financial records to potential investors.

Dixon’s comments came in a YouTube interview where the early-bitcoin-adopter-turned-crypto-investor described his proposed recovery plans for Celsius, which the company declined to follow. 

Dixon advised Celsius CEO Alex Mashinsky to be transparent about the company’s financial situation and publicly outline a recovery plan. Mashinsky declined to make Celsius’ financial situation public.

“The only reason you wouldn’t pursue [a lucrative round of investment] is there’s something else going on,” Dixon opined.

Cash-strapped crypto lender Celsius has slowly worked to restore liquidity after pausing customer withdrawals in June. The firm has issued two statements in the past month, but neither of them indicated when withdrawals are expected to resume or how the company plans to further restore liquidity.

Dixon, whose company has tens of millions of dollars deposited in Celsius, said a potential multibillion-dollar bailout that he had proposed fell apart after Celsius refused to share its balance sheet with investors. 

Critics have accused Dixon of plotting a hostile takeover of Celsius. Dixon denies the allegations, saying a takeover would ruin the trust his company has built in its various other crypto firm partnerships.

Celsius has been reclaiming collateral by paying down its debts to the Aave and Compound decentralized finance (DeFi) protocols in recent days. The company freed up $410 million in staked ether from Aave this morning after unlocking $172 million from the protocols on Monday. 

In a phone call, a Celsius representative declined Blockworks’ request for comment and said all company statements can be found on Celsius’ blog.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Even with the dip, bitcoin remains up more than 7% this week and 44% over the month, an increase analysts attribute to a combination of tailwinds

article-image

Bitcoin is putting up some of its best numbers in years as it inches closer to retesting record highs

article-image

Coinbase users took to X to air concerns about their accounts showing zero funds

article-image

The iShares Bitcoin Trust shattered its daily trade volume record hours before market close Wednesday

article-image

The mining segment has healthy buyers likely to be “very inquisitive and active” around the halving, crypto advisory firm partner says

article-image

In reality, many of the oft-touted uses for bringing blockchain and AI together aren’t actually all that useful