My question is “If they still have $4.2 billion in deposits, why are they bankrupt?”
Until this ruling they didn't have clear title to that $4.2 billion.
To pay the lawyers first....?
Celsius has an outstanding debt of US$82 million on the Maker protocol. Celsius’ total investments in Maker amount to US$1.8 billion, which led to a loss of US$656.5 million, according to DeFi Explore data
https://finance.yahoo.com/news/celsius-repays-debts-cuts-jobs-043743593.html#:~:text=Celsius%20has%20an%20outstanding%20debt%20of%20US%2482%20million,of%20its%20staff%2C%20Israeli%20media%20outlet%20Calcalist%20reported.
someone else will have to explain what “Maker protocol” is
“My question is “If they still have $4.2 billion in deposits, why are they bankrupt?””
lots of reasons ...
1. they probably don’t HAVE the $4.2 billion; that’s probably just the amounts “deposited” by the suckers ... most likely that’s mostly been gambled away ...
2. When Celsius gambled it away, they did so with margin, that is, they borrowed and promised to pay back ADDITIONAL big chunks of money, but with promissory agreements giving their debtors priority rights for repayment, whereas retail “customers” signed agreements (usually unknowingly) saying it was quite OK if all their crypto went poof and they wouldn’t get anything back ...
3. Finally, even though there are SOME assets remaining, the debts owed are much greater, and payoff will be based on the priority terms written into any repayment agreements ....