Celsius and Fabric Ventures Are Fighting Over a $8 Million Series B Clawback

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Last Updated on January 19, 2023 by Bitfinsider

Celsius, a bankrupt cryptocurrency lender, is seeking to withdraw more than $6 million from a $8 million investment commitment made by VC company Fabric Ventures.

According to a court filing released Tuesday, Fabric was planning to contribute more than $8 million in Celsius’s Series B financing across three installments. Celsius announced the completion of its expanded Series B financing in November 2021, increasing a $400 million round to $750 million at a $3.25 billion valuation.

Fabric’s first payment of $2 million was made in May, according to a schedule agreed upon in April of last year. The next payments were to be $2 million in June and $4 million in July.

The arrangement did not work out as planned. The ailing institution declared bankruptcy in July, about a month after freezing client withdrawals and locking billions of dollars in over a million accounts. According to recent court records, Celsius’s liabilities exceeded $6.7 billion but its assets were only valued roughly $3.9 billion, resulting in a $2.8 billion balance sheet shortfall.

“This action seeks damages in the amount of the two outstanding payments, $6,003,379, plus interest, fees, and additional relief indicated below,” according to the recently filed court petition.

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