Celsius Network law firm predicts the company will run out of money by the end of October

Kirkland & Ellis, the law firm hired by crypto lending platform Celsius Network, included financial projections in a new court filing on Monday, revealing that Celsius has less than three months of cash on hand and predicting the company will be out of cash by the end of October. Run out of money. The opening cash balance at the beginning of August was nearly $130 million. The balance will turn negative in October as the company's operating expenses and other costs, including expenses for restructuring efforts, are expected to reach $137 million over the next three months. At that point, the company expects its liquidity to be negative $33.9 million. Additionally, the document states that Celsius holds $2.8 billion less in cryptocurrency than it owes depositors. Brandon M. Hammer, an attorney at law firm Cleary Gottlieb Steen & Hamilton, told CoinDesk, “Celsius could resolve the issue through debtor financing or asset sales, but to take such steps they need court approval, which requires notice and interested parties. ".