- Celsius (during Tuesday’s court hearing) confirmed that reorganizing the firm into a public entity would recuperate more cash than liquidation would.
- Martin Glenn, bankruptcy judge, told Celsius that new company plans would have to pass through creditors, including clients.
- Celsius Mining notified about selling its $1.3M mining equipment early this month.
Celsius plans to follow Bitfinex’s steps as it launches plans for the platform rehaul & relaunch. The firm looks to cancel the damage that creditors cause by concentrating on a new coin rather than selling hard-to-liquidate assets.
Celsius on Another Attempt
Celsius’ July 2022 bankruptcy, alongside 3AC’s debacle, triggered the initial contagion of the past year. Traders and customers experienced the impacts of that. Meanwhile, the lending firm wants to repay creditors through an unusual path as far as bankruptcy is concerned.
Tuesday’s court proceedings confirmed that Celsius Network considered exiting insolvency through a new virtual coin. Alongside this, the lending platform wants to reorganize Celsius into a publicly traded firm.
The company attorney Ross Kwasteniet trusts the transformation would enable Celsius to attract more cash for creditors and customers. That would enhance the recovery speed as a licensed firm would draw more currency than selling assets.
While writing these lines, Celsius plans to form a new firm and issue a new digital coin. Nonetheless, before executing the plan, the firm needs authorization from exchange creditors via voting. Creditors, including the platform’s customers, will vote to approve or not approve the reorganization plan, after which the company will garner a relaunch order from Judge Glenn.
Celsius Tries Recoveries
While Celsius plans to restart its platform, Celsius Mining’s branch sold its mining tools early this month. During the bankruptcy filing, Celsius confirmed the selling equipment worth about $1.3 million. Reports indicated that Touzi Capital purchased 2,678 pieces of mining equipment.
Moreover, NY Attorney General Letitia James began targeting Celsius CEO and founder Alex Mashinsky. James filed a case against Mashinsky for scamming many of its investors. The attorney seeks recoveries of the investor losses and banning the executive from operating in New York.
