Celsius announces loans to Alameda Research totalling $13 million
The cryptocurrency lending company Celsius said that it has 3.5 million Serum tokens on FTX in addition to providing Alameda Research with loans totalling $13 million.
Celsius, a troubled cryptocurrency lending company, said that it has exposure to the FTX exchange and sibling trading business Alameda Research, both of which had filed for Chapter 11 bankruptcy protection on Friday.
Celsius tweeted “in the spirit of openness” that it had around 3.5 million Serum tokens on FTX, the majority of which were locked, in addition to $13 million in loans to Alameda Research that it claimed were under-collateralized.
In July of this year, Celsius, a cryptocurrency lender that allegedly operated in a manner similar to a Ponzi scheme, filed for protection under Chapter 11 of the bankruptcy code.
After reviewing Celsius’s financial information in June, FTX decided against entering into a partnership with the company and dropped the idea. After examining its own financial situation five months later, Binance decided against entering into an acquisition agreement with FTX.
According to a study that was published by The Block on November 11, Alameda has anywhere from $10 billion to $50 billion in assets, as well as $10 billion to $50 billion in liabilities, and over 100,000 creditors.