On July 13, exactly one month after halting withdrawals and transfers from accounts, cryptocurrency lender Celsius Network filed for bankruptcy.
Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York received Celsius’ financial review and restructuring plan today as part of the bankruptcy court hearing.
Negotiating restructuring deals with stakeholders, funding Bitcoin mining activities with bitcoins created by a subsidiary, and “asset sales and third-party investment options” are all steps in the restructuring plans.
Additionally, the company gives clients the choice of getting their money back at a discount or keeping their cryptocurrency investments invested.
In the bankruptcy procedure, the troubled crypto lender provided choices for consumers to get their money back as well as ideas for restructuring.
Celsius revealed last week that the company has $4.3 billion in assets and $5.5 billion in liabilities, with $600 million in CEL tokens being worth about $170 million.
What is the Restructuring About?
To maintain the value of the company, Celsius intends to arrange a thorough restructuring deal with interested parties.
Additionally, the business will keep running its Bitcoin mining operations, keeping Bitcoin, and using newly-minted Bitcoins to assist in paying off debt.
In order to meet its financial responsibilities, the corporation will also take into account “asset sales and third-party investment prospects.”
Soon, Celsius will reveal a strategy that will let customers get their money back. It might, however, be a discounted cash settlement.
Another choice is to hold onto your investment in the company until the restructuring is finished.
The strategy can also involve giving out CEL tokens. The company will be restructured and stakeholder returns will be maximized.
As of July 13, stats show that Celsius has more than 1.7 million users across more than 100 nations. It controls the “keys” to its cryptocurrency assets directly and holds the majority of its assets on FireBlocks. Moreover, 77 percent of deposits are in the Earn Program.