Celsius Loses $6 Billion In Bailout For Refusing To Disclose Financial Records
BnkToTheFuture CEO, Simon Dixon, advised Celsius to declare bankruptcy and go public with its finances. However, the company kept its balance sheet private while paying off its DeFi debts.
Celsius refuses to disclose financial records
BnkToTheFuture CEO Simon Dixon described the recovery plan he proposed to cash-strapped crypto lender but the company refused to comply in a Youtube interview.
Specifically in its proposal, Dixon has guaranteed investor liquidity up to $6 billion to solve Celsius’s liquidity problem. But the deal fell apart when the lending platform refused to disclose its financial records to investors.
Dixon advised Celsius CEO Alex Mashinsky to be transparent about the company’s financial situation and publicly outline a recovery plan, Mashinsky refused
“The only reason you wouldn’t pursue (a lucrative round of investment) is there’s something else going on,”Dixon said
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.
It’s been 1 month since Celsius halted withdrawals citing extreme market conditions. Currently, this crypto-lending company is about to pay off its debt but has not yet seen a move to open a withdrawal block for users from the company.
Notably, the mortgage that Celsius recovered from debt repayment is still unclear for what purpose it will be used, if selling all of these coins, it could have a big impact on the market.
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