Celsius Would Rather Lose $6 Billion Bailout Than Disclosing Its Financial Records, Investor Says

Celsius has managed to pay off several million dollars in debts after nearly filing for bankruptcy due to lack of liquidity, raising all sorts of conjectures regarding the origin of its funds.

On June 12, Simon Dixon, CEO of the online investment community BnkToTheFuture, said during an interview with Anders Larsson on YouTube that Celsius lost $6 billion in liquidity assistance from potential investors because of its refusal to disclose its financial records.

So in these challenging times, Celsius has valued more its confidentiality than its stability.

Privacy Vs. Stability

Dixon said he advised Celsius to do as Voyager Digital, a cryptocurrency trading, and lending platform, which voluntarily filed for bankruptcy two days ago to restructure the company and minimize its customers’ losses.

However, Larsson chose to ignore Dixon’s advice, even though he invested tens of millions of dollars in the company. Instead, Celsius decided to act differently, which led Dixon to speculate that there was something more important going on behind the scenes for Celsius to turn down such an attractive deal.

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

Even though Celsius might have hurt its customers, according to specialized reports, the firm continues to carry out its plans to increase its liquidity and prevent a possible bankruptcy. Since last month, the platform has prevented users from withdrawing money until further notice. This situation surprised many investors who held loans in BTC and caused a slump in the price of Celsius’ native token, $CEL.

How Did Celsius Repay Over $440 Million in Debt?

Today, Celsius completed an $81.6 million payment to Aave, bringing down its debt from around $90 million to less than $8.5 million. In this way, Celsius managed to recover 400,000 staked ethereum (stETH) it previously deposited as collateral.

In addition, the company already paid the totality of a previous loan with Maker for a total of 23,000 WBTC, which would be around $440 million, an amount that was close to its liquidation threshold when the price of bitcoin fell close to $17,600.

Thanks to all these payments, its total collateral debts to all the platforms have decreased significantly, leaving it at $8.5 million for Aave and around $50 million for Compound – paying off this debt would give back Celsius $227 million.

However, the fear surrounding Celsius’ investors might turn into uncertainty as the company refuses to be more transparent about its actions. And “uncertainty” in business is not really good news. After all, it is the second word in the acronym FUD.