Exactly one month after suspending withdrawals and transfers from accounts, Celsius Network filed for bankruptcy. Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York heard Celsius’ financial review and restructuring plan today as part of the court hearing.
For example, reorganization plans include efforts to support Bitcoin mining activities by minting minted bitcoins by its subsidiary and selling assets, and seeking third-party investment options.
Additionally, the organization provides clients with the choice to either get their money back at a discount or keep their cryptocurrency investments.
Customer recovery alternatives and intentions for restructuring have been provided by the insolvent crypto lender during the bankruptcy procedure. Celsius reported $5.5 billion in liabilities and $4.3 billion in assets last week, with $600 million worth of CEL tokens currently worth $170 million.
Thermal energy company Celsius aims to enter into an extensive restructuring agreement with its shareholders. It will also continue to maintain its Bitcoin mining activities while also retaining Bitcoins to assist the business pay off its debts as they are mined and created.
In order to satisfy its financial responsibilities, the corporation will also look into “asset sales and third-party investment alternatives.”
Customers will be able to get their money back shortly, according to a new initiative by Celsius. However, a monetary settlement may be possible. It’s also possible to hold on to your shares in the company as it goes through its reorganization. Distributing CEL tokens is another possibility. Maximizing investor returns and restructuring the company are two of the primary objectives.
Celsius has more than 1.7 million registered users in more than 100 countries as of July 13. It doesn’t depend on a middleman to retain the “keys” to its crypto assets, which are stored on Fireblocks. In addition, 77% of all deposits are in the Earn Program.
Celsius’s consumers were the ones who suffered the most since the terms and conditions revealed the company’s jurisdiction over deposits. Celsius consumers are unlikely to get their money back if the firm goes bankrupt, according to the terms and conditions.
As a result of the community-led “CEL Short Squeeze,” several consumers have regained their losses. Users were able to manipulate the price of CEL tokens from $1 to $0.43 in only one day.
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