Celsius Owed $439M by Lending Firm EquitiesFirst: Report
Celsius first borrowed from EquitiesFirst in 2019 before an overcollateralized crypto loan went sour in 2021.
Beleaguered crypto lending firm Celsius Network is owed $439 million by Indianapolis-based private lending platform EquitiesFirst, according to a Financial Times report, citing two unnamed sources.
EquitiesFirst, which was founded in 2002, began offering crypto collateralized loans in 2016.
“EquitiesFirst is in ongoing conversation with our client and both parties have agreed to extend our obligations,” the firm told the FT.
Celsius began borrowing from EquitiesFirst in 2019. Two years later, Celsius was asked to repay a loan by EquitiesFirst in order for the collateralized crypto to be returned only to be told that it could not be delivered in a “timely basis,” according to the report.
EquitiesFirst is currently repaying $5 million per month, the debt is made up of $361 million in cash and 3,765 bitcoin (BTC), worth nearly $79 million at the time of writing.
Details of the debt first emerged in Celsius’ bankruptcy filing on Thursday, in which it revealed that it had liabilities of $5.5 billion and $4.3 billion of assets.
The shortfall may increase as $600 million of Celsius’ assets is locked up in the now depleted CEL token, which is trading at $0.80 despite hitting an all-time high of $8.04 last June.