Celsius CEO Alex Mashinsky admitted that the company has a $1.2 billion deficit on its balance sheet, according to bankruptcy filings.
It was rumored that this was the obvious reason why cryptocurrency exchange FTX’s deal to buy Celsius was approved.
The company currently has $4.3 billion in assets and $5.5 billion in debt.
The company has invested a significant portion of its clients funds into its own mining operation with a line of credit of $750 million.
Celsius additionally received a $108 million loan from FTX, which was backed by $403 million in assets.
According to bankruptcy documents, the company raised only $600 million in 2021 instead of $750 million.
The company recently filed for bankruptcy protection.
