Key Points:
- Celsius customers informed clients that they are still in discussions with the business about a “recovery corporation” proposal made by Celsius’s lawyers in a desperate attempt to partially reimburse them.
- UCC attorney said that the committee is also, “running down a number of other options in particular,” and expressed dismay that details of bids for Celsius leaked last week.
- Major findings were made in a 600+ page report earlier on Tuesday that was made public by a court-appointed examiner.
Despite a negative assessment from a court-appointed examiner, lawyers for former Celsius customers informed clients that they are still in discussions with the business about a “recovery corporation” proposal made by Celsius’s lawyers in a desperate attempt to partially reimburse them.
Despite findings in the report released earlier on Tuesday revealing excessive self-dealing and over-leveraging, the Celsius Official Committee of Unsecured Creditors Twitter town hall took place.
Representatives from the committee discussed the idea of a recovery corporation during a Tuesday “town hall” on Twitter, which was attended by about 2,500 people. The proposal called for the company to tokenize and give account holders a “asset share token that would reflect the value of the assets managed by the Recovery Corporation.”
A UCC attorney said that the committee is also, “running down a number of other options in particular” and expressed dismay that details of bids for Celsius leaked last week.
“This leak is likely only going to reduce creditor recoveries because whether the information is accurate or not, it provides people that are still in the process to whom we’re speaking every with day with information about how things might or might not be unfolding and that reduces the flexibility that the committee has in dealing with these parties to get the best possible outcome,” the representative said.
High-profile Tiffany Fong acknowledged on her Twitter feed that she leaked information she obtained about bids placed for Celsius’s assets.
Binance, Bank to the Future, NovaWulf, Cumberland/DRW and Galaxy Digital were among bidders
Fong stated on Twitter in response to a statement made by Celsius investor Simon Dixon that :
“Before disclosing the offers, a senior Celsius employee was explicitly questioned as to whether the bids were still on the table. I purposely didn’t reveal them because I didn’t want to interfere with the bidding process.”
Selling off Celsius’ mining company is one among the possibilities the UCC is considering, a committee representative said. The group has been considering “winding down Celsius or transferring the cryptocurrency to a third party,” the lawyer added.
Major findings were made in a 600+ page report earlier on Tuesday that was made public by a court-appointed examiner. These revelations ranged from the company exceeding its own lending limitations, including lending $2 billion to Tether, to owing millions in taxes.
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