A lot has happened during the Celsius bankruptcy case since the platform originally went under back in July.
Between accusations of fraud, arguments that customers (or unsecured creditors, according to the firm) signed over their crypto, alleged attempts by the former CEO to flee the country, and more, Celsius’ court proceedings have been a wild ride, to say the least. Now, the lender’s legal team argues that liquidation would raise less money for creditors than restructuring, which may be true.
However, the restructuring process proposed by Celsius’ legal team relies heavily on printing a new token to “aid recovery.”
Plan Allegedly Proposed by Creditors
According to Ross Kwasteniet, an attorney representing the crypto lender in their ongoing bankruptcy case, Celsius’ assets would be hard to liquidate due to current prices. This situation prompted several unnamed company creditors to propose a restructuring plan based on a tentative newly-minted recovery token, as reported by Bloomberg.
There’re some precedents – CoinFLEX, Bitfinex, and others have come up with similar ideas. Unfortunately, regardless of the optimistic language used by these struggling platforms to sugarcoat the idea, it is still essentially…