Key Points:
- Bankrupt bitcoin lender Celsius may soon restructure and issue a cryptocurrency token to pay users.
- Celsius is also preparing to launch a brand-new cryptocurrency token as payment to the business’s creditors.
- Some creditors are urging Celsius to follow Bitfinex’s example and create the UNUS SED LEO coin, which it did in 2019 after losing access to some of its cash
According to a report from Bloomberg on January 24, bankrupt bitcoin lender Celsius may soon restructure and issue a cryptocurrency token to pay users.
Ross M. Kwasteniet, an attorney for Celsius, said at a court proceeding that the business might be restructured into a publicly traded company with the right licensing. Given the present unfavorable crypto market conditions, such strategy might be a better option for creditors than selling the company’s crypto assets.
According to Kwasteniet, Cel is also preparing to launch a brand-new cryptocurrency token as payment to the business’s creditors.
According to reports, some creditors are urging Celsius to follow Bitfinex’s example and create the UNUS SED LEO coin, which it did in 2019 after losing access to some of its cash. In order to give users compensation, Bitfinex promised to buy back the token.
Similar to Celsius, CoinFLEX, which failed immediately after its own collapse, also released a recovery token (rvUSD) last summer. Users who were prepared to hold the asset received 20% yearly profits on the token, which was pegged to the value of the US dollar.
To issue a token, Cel would require a federal judge’s consent. Any reorganization plan would also be put to a vote by creditors.
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