A refund sprinkled with CEL? – Reimburse its creditors by issuing a new crypto? A taste of Luna 2.0, no ? Finally, in the context of a bankruptcy procedure, all the plans are imaginable to try to reimburse the creditors. And this is in any case the new idea of the bankrupt crypto lending platform, Celsius. Decryption.
Celsius’ new bailout plan
Reimburse lost money by creating fresh new ones. Here’s a good idea. Simplistic and unrealistic as it was, expressed in these terms, the idea is in fact not so stupid and more complex than it seems. This is actually the proposal formulated by Celsius’ lawyer, Ross M. Kwasteniet, before the tribunal. Indeed, the company Celsius has placed itself under the protection chapter 11 of the United States bankruptcy law last July. Consequently, for lack of redemption for the moment, it is negotiating ardently with its creditors on the best way to repay them.
Gold, pure and simple liquidation of the assets of the company a priori would not be the most profitable way of doing business. Indeed, the idea would be as follows: relaunch the platform by transforming Celsius into a ” publicly traded company with a valid license “. If the proposal is approved by creditors, Celsius is expected to issue “ a new token as part of the redemption plan “.
“Celsius is considering tiered repayments, small investors holding less than $5,000 could be fully repaid. Large investors would receive a debt token, a priori equivalent to their sum held on the platform, which they would be able to resell.
To become a listed company, Celsius would assume the services of a yet unknown third party. This would help it to fully comply with US regulations as the company rebuilds.
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Swap your tickets for CEL
In practice, for Celsius users, the refund process would go like this. All the users holding $7,500 or less on the platform would be able to withdraw up to 94% of the sum. The new token issued would then complete the remaining 6%.
For large carriers, on the other hand, anything over $7,500 would therefore be reimbursed through this new token, the future value of which remains full of uncertainty. In short, a means of raise new funds for Celsius who does not intend to be liquidated so easily. Alex Mashinskyits founder, recently charged with fraudtherefore redoubles his ingenuity to try to save his company.
Celsius therefore raises the temperature regarding the potential for an improvement in the situation. A whole new idea release of their sombrero could well restore color to a future that has been very dark until now. Let’s hope that the year 2023 will unfold under better omens and stop to make cryptocurrency holders sweat.
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