Bankrupt crypto lender Celsius is attempting to call in a more than $6 million from an $8 million investment commitment made by VC firm Fabric Ventures.
Fabric was set to invest more than $8 million in Celsius's Series B round, spread across three payments, according to a court document filed Tuesday. Celsius said it had closed its extended Series B in November 2021, boosting a $400 million round to $750 million at a $3.25 billion valuation.
Following a schedule agreed in April last year, Fabric's first payment of $2 million was made in May. The subsequent payments were supposed to be $2 million in June and $4 million in July.
The arrangement did not go to plan. The beleaguered lender filed for bankruptcy in July, roughly a month after halting client withdrawals and trapping billions of dollars across more than a million accounts. Recent court documents showed that Celsius's liabilities were more than $6.7 billion and its assets were worth only around $3.9 billion, resulting in a balance sheet hole of $2.8 billion.
"This action seeks damages in the amount of the two outstanding payments, $6,003,379, plus interest, fees and other relief specified below," the newly filed court document states.
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