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Bankrupt cryptocurrency lender Celsius Networks has shown signs of life. The company would issue a special token to help it pay off its debts to investors. Sounds like Luna 2.0? Or is it not a bad plan after all?
At the January 24 court hearing, a Celsius representative told a bankruptcy judge that a properly licensed and publicly traded company could raise more money to pay its debts by issuing a new token rather than just selling property and assets at current prices. According to the company’s suggested plan, large investors will receive an asset share token (AST) according to the amount of funds invested. These coins can either be held to receive dividends in the future or sold immediately.
In addition to a new token, the plan includes the following:
If the court allows Celsius’ reorganization plan, among the assets of the new company will be a portfolio of loans and investments, as well as Bitcoin mining machines managed by Celsius.
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The court also ruled that the frozen crypto assets held in the company accounts were the property of Celsius. And the crypto lender is allowed to return coins that were unintentionally sent to the company after the bankruptcy began, when it was no longer allowed to accept them.
Celsius filed a motion to allow its customers to vote on the plan on June 30. The Celsius Network Official Committee of Unsecured Creditors stated in writing that it would not allow any further extension.
elsius still has its own native CEL token. At the beginning of 2022, it was worth $4.45, and after the bankruptcy filing, it fell to $0.2082. As of January 27, however, amid news of a potential recovery, CEL is holding steady at $0.64 (+7.41%). According to CoinMarketCap, the bankrupt company’s market capitalization is now $146,202,981 (and at its worst was $49,489,508).
The trading volume for the day amounted to $1,593,202. Of which $669,400 or 42.01% came from OKX exchange with the trading pair CEL/USDT.
As soon as the news became known, Celsius customers began receiving messages about an alleged request from the company for authentication data. Be careful!
Celsius Network is a cryptocurrency lending company founded in 2017.
Celsius filed for bankruptcy in July 2022, a month after it froze customer withdrawals due to the decline in the crypto market. Because of the dramatic fall in prices, the company’s balance sheet has had a hole of $1.2 billion and more than 100,000 creditors.
Earlier, at least five companies made bets on Celsius Network crypto assets, including Binance, Bank To The Future, and Galaxy Digital, according to a leak shared by crypto blogger Tiffany Fong.
The current company’s coins stock and changes in the number are below. The full report on the Celsius Network can be found here.
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