Celsius To Repay Creditors By Issuing New Token

According to statements made by Celsius in court on Tuesday, the crypto-lending firm is contemplating the issuance of a new digital asset token in order to compensate creditors as part of its proposal to reorganize & emerge from bankruptcy; as an upcoming regulated cryptocurrency platform.

A New Celsius Token?

During a video-court hearing, the attorney for the company, Ross M. Kwasteniet, stated that reorganizing Celsius into a publicly traded company that is properly licensed would bring in more money for creditors than selling assets, that are difficult to liquidate at the prices that are currently available. Any proposal for restructuring would initially be put to a vote by creditors, which would include Celsius customers who had cryptocurrency stored on the company’s platform. U.S. Bankruptcy Judge Martin Glenn would then weigh the results of that vote while determining whether to accept the proposal or not.

Read More: Check Out The Top 10 DeFi Lending Platforms Of 2023

According to Kwastenet, after the crypto lending giant filed for bankruptcy the previous year, the company tried to sell itself as a functioning corporation while also seeking offers for its assets. However, the bids that have been made for the individual assets are not attractive enough. Instead, Celsius has been engaged in discussions with a variety of creditor organizations on the formation of a new firm and the distribution of a new token to creditors as part of a compensation plan.

It has been determined that the offers for the individual assets have not been compelling

Celsius Plans New Beginning

Furthermore, Kwasteniet indicated that the corporation would submit court documents later this week that provided specifics regarding their objectives. Moreover, he added that any new business would be structured on its assets, which would comprise a portfolio of loans and other investments, in addition to tens of thousands of cryptocurrency mining machines.

While speaking on the topic of crypto mining during the hearing, the company’s financial adviser highlighted that the sector has been growing exponentially in recent months.

Also Read: Coinbase Reveals 3 New Tokens To Get Listed Soon

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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