Equitiesfirst Named as Mysterious Debtor to Celsius, Owing $439 Million to Crypto Lender, According to the Report

October 21, 2022

Bitcoin narrowly avoids a record-breaking 10 weeks of losses

Equitiesfirst Named as Mysterious Debtor to Celsius, Owing $439 Million to Crypto Lender, According to the Report

Since Celsius suspended the withdrawals on June 12, the company has been concentrating on the lender’s financial problems. A month later, Celsius filed for bankruptcy in the United States. Two days after the bankruptcy, a report revealed that two people familiar with the matter said Celsius owed $ 439 million to private equity platform EquityFirst.Bankruptcies, liquidations, and bankruptcies have recently been a hot topic in the cryptocurrency world.

Three prominent crypto companies, including cryptocurrency exchange Voyager Digital, cryptocurrency lender Celsius, and crypto hedge fund Three Arrows Capital (3AC), have filed for bankruptcy. Celsius filed for bankruptcy on July 13, 2022, or 31 days after the company ceased its exit. Prior to the bankruptcy in July, in the second week of June, there were speculation that Celsius funds were locked into some decentralized finance (challenge) protocols that required immediate adjustment or liquidation of significant guarantees. A few days before the bankruptcy announcement, the company’s wallets exchanged millions of dollars to pay off Compound and Ave.

EquityFirst is the lender that owns the crypto lender of $ 439 million, according to two people familiar with the matter. Founded in 2002, Equitiesfirst is an investment firm that “specializes in long-term asset-backed financing,” according to its website. Although Equitiesfist manages shares, it has also been trading in some cryptocurrencies since 2016. Johnny Heng, CEO and President of Equitiesfirst Singapore, spoke about cryptocurrencies in April 2022.“About six years ago, we were pure equity and started doing cryptocurrency lending as well, and that performance has really grown back in the last year or two,” Heng told hubbis.com. An Equitiesfirst spokesman told the FT: “Equitiesfirst is in discussions with our client and both parties have agreed to extend our commitment.”


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