Celsius New Token May Be Used To Repay Creditors – Report

Celsius, a bankrupt crypto lending firm may issue its own token to repay creditors, according to a January 24 report from Bloomberg. 

iexclusivenews understands that the report cites a video court hearing as the source of the information.

Celsius attorney Ross M. Kwasteniet told the court that the company is negotiating with its creditors on how to relaunch the platform and adequately repay them, according to the report.

It is claimed that the new relaunched version, which would be “a publicly-traded company that is properly licensed.” – Could pay creditors more money than simply liquidating the business.

The reorganized business would “issue a new token to creditors as part of a payout plan” if creditors and the court approved it.

According to the report, the court will receive the plan’s specifics later this week.

Twitter user CelsiusFacts, who often tweets updates about the case, also claimed to have found details of the reorganization plan.

According to a statement on January 24, Celsius Network intends to become publicly traded and use “third party services” to ensure that it complies with U.S. financial regulations.

Users may be able to withdraw up to $7,500 worth of claims or 95% of the total, whichever amount is smaller.

The new token would be issued to cover the remaining 5% or amounts above $7,500.

The court schedule for the case shows that an “Omnibus Hearing” was scheduled for January 24, and the agenda was released by the court before it occurred.

iexclusivenews Nigeria learnt that the hearing may have been the source of the reports from both Bloomberg. And @CelsiusFacts, although this has not been confirmed at time of publication.

In June 2022, Celsius stopped allowing user withdrawals. Blaming “extreme market conditions” for the lack of liquidity.

It submitted a bankruptcy filing in july. The lawsuit was filed on January 5 against the founder of Celsius, Alex Mashinsky. For allegedly making “false and misleading statements” to investors.