The crypto credit-driven carnage still ravages the market, and more clarity regarding the contagion effects continues to emerge in the market.
Celsius Network hired new restructuring lawyers and sought bankruptcy protection. Celsius’s Chapter 11 filing provided more clarity on the impact of the crypto contagion. The Pharos USD Fund is Celsius’s largest unsecured creditor, with an unsecured claim of approximately $81m. Other named creditors include ICB Solutions, Alameda Research, B2C2, and Covario AG.
Further, Blockchain.com announced it had taken a $270m hit on a loan to 3AC. Meanwhile, BlockFi announced that they would no longer accept GBTC as collateral for loans. Among “good Samaritans” seeking to utilize the situation to step in, settle the situation, and buy distressed assets, Justin Sun, with his seemingly eternally deep pockets, claims he’s ready to step in with up to $5bn to acquire struggling crypto firms.