October will turn out to be a very bad month for the followers and clients of the Celsius Network. A recently filing is suggesting that the month of October will be the end of Celsius Network’s financial activities.
Celsius Network will Lose All Funds by October 11
As the Celsius Network is on the verge of going bankrupt, it is required by the court to provide all the data surrounding its balance sheets and funds.
In the recent filing that the embattled firm has submitted to the United States Bankruptcy Court, it has made a very alarming revelation.
In the filing, the cryptocurrency lender has confirmed that it is currently losing money. If this continues, then the Celsius Network will end up losing the funds it currently holds.
The Celsius Network has confirmed that by October, it will run out of money. The information was submitted by the network in the Chapter 11 documents.
The Filing was submitted on Sunday
On Sunday, New York’s South District’s Bankruptcy Court received a filing from the Celsius Network. In the filing, the Celsius Network claimed that it strongly expected that by October 2022, it will reach negative liquidity.
In the filing, it was confirmed that the negative liquidity would bring the firm down by almost $34 million.
Information about Celsius Network
The Celsius Network was launched back in 2017 and since then, it had earned itself a position among the highly reputed and respected firms within the crypto space.
The firm had been providing its cryptocurrency lending services to people from all over the world. It was one of the reasons many investors and people from around the world gained exposure to the world of cryptocurrencies.
Although the platform was able to fight off all the obstacles and troubles it came across, it was not able to deal with the May debacle.
The TerraUSD Debacle
That was the time when the Terra Network ended up facing a massive algorithmic debacle. This led to the devaluation of the Terra (LUNA) token as well as the de-pegging of the TerraUSD (TUSD) stablecoin.
As the Celsius Network was dealing mainly with TerraUSD, it soon started to feel its negative impact on its operations. Although the network tried to hide the pressure it was under, it ended up losing all of its hard work in a matter of two months.
All was Lost in July
In the month of July, the Celsius Network halted its withdrawal services and announced that it was facing serious financial issues. Just recently, the Celsius Network announced that it was undergoing Bankruptcy and now, it is on the verge of losing its entire existence.
The company has announced that after running out of cash in October, it will continue going in negative. By the end of December 2022, it will be under $137.2 million in the form of negative funds.
