Crypto lending platform Celsius Network had filed for bankruptcy on July 13. A month prior to that the crypto lender had ceased withdrawals along with transfers from accounts. Celsius representatives appeared in court which is in relation to the company’s bankruptcy hearing.
It has now disclosed through a presentation what its next step towards recovery would be. The crypto lending platform has worked to provide a financial oversight in order to procced with restructuring. This document that Celsius has prepared, mentions how it shall form a plan to allow the users to take cash or choose for ‘long crypto’.
This presentation provides alternatives for the users to get their money back. The platform has also spoken of making use of Bitcoin mining operations along with third-party asset sales to gather funds and pay the debt back. In this recovery plan, the crypto lender Celsius has also presented ways such as negotiating the restructuring transaction with stakeholders.
The plan put forth by the lending platform was extensive in nature and it completely structures the way the company wants to address the crisis. It presented a thorough plan of returning the funds back to the creditors.
According to plan, crypto lender Celsius is aiming to use Bitcoin minted by minting operations that shall aid mining operations which will help grow Bitcoin holdings.
Recently, it has also been reported that Celsius received permission from the US bankruptcy judge Martin Glenn to spend close to $3.7 million to construct a Bitcoin mining facility. Additionally, a $1.5 million on customs and duties are also to be paid on the imported customs mining rigs.
Lawyer of Celsius, Patrick Nash mentioned to judge Martin Glenn that mining might pave a way to help the company. Celsius had ceased crypto lending, repaying customers whose assets were frozen before the bankruptcy was filed.
Suggested Reading | Crypto Collapse Pulls Celsius Network Down Into Bankruptcy
Patrick Nash mentioned that recovery plans do not include undergoing total liquidation. According to him, the lender does not intend to force their customers to take their recovery in fiat currency.
As the crypto market downturn continues, Nash is of the opinion that users would choose to go long in this crypto winter. Users shall also have the “opportunity to realise their recovery” once the broader macroeconomic conditions start to look up.
Patrick Nash added,
In a world where the crypto market rebounds, the mining business has the potential to be quite valuable.
The crypto lender had filed for Chapter 11 and listed a $1.19 billion deficit on its balance sheet. The business model which Celsius operated was severely inspected after a sell-off that occurred owing to downfall of important tokens such as terraUSD and Luna two months ago.
Although a lot of priority has been given to Bitcoin mining, a group of equity investors have expressed concerns over a problem which could arise in order to control the Bitcoin mining operations.
Investor’s layer, Dennis Dune spoke of how the recently mined coins should be accounted as property of the UK subsidiary which is responsible in raising funds for the operations and not being distributed for the advantage of the company’s creditors.
Additionally customers could also create objection on Bitcoin mining vendors during a time when the platform is struggling to recover as mentioned by the U.S. Department of Justice’s bankruptcy watchdog.
Related Reading | Celsius Network Lawyers Argue That Users Have No Right To Their Crypto
Featured image from The Hindu, chart from TradingView.com
ORA, formerly known as HyperOracle, seamlessly integrates AI with decentralised applications (dApps). Recently, ORA secured $20 million in funding, highlighting investor confidence in its innovative approach to smart contracts and AI.
AnaisPixels' founder, Luke Barwikowski, announced plans to develop more games within the 'Pixels' universe and hinted at potential future launches on Telegram, citing its intriguing ecosystem.
KikyoSony's rebranding of WhaleFin to S.BLOX marks its entry into crypto with a robust platform, aiming to integrate across its diverse businesses and offer new users Bitcoin incentives through Nuro Mobile.
WeatherlyAstroon uses a Compete-to-Earn model to immerse players in a dynamic digital universe with thrilling adventures, unique NFTs, and community-driven activities. With the $AST token IDO launching on multiple launchpads, and the TGE set for July, will this project, led by two charming astronauts, soar to the moon?
CatherineLombard aims to enhance Bitcoin's role in DeFi by introducing LBTC, allowing users to stake Bitcoin for yield while retaining liquidity, bridging traditional finance with blockchain innovation. Backed by a $16 million seed round led by Polychain Capital, Lombard plans to integrate LBTC across major DeFi platforms, promising to reshape the DeFi landscape with cross-chain compatibility.
JoySydney Sweeney’s X account was hacked, with now-deleted posts promoting a crypto token bearing her name. The hackers claimed responsibility and hinted at a bigger prey. Who will be the next unlucky star?
KikyoBitDoge, a new meme coin on the Bitcoin network, combines staking, Play-to-Earn gaming, and AI chat features, aiming to blend entertainment with financial opportunities. While showing promising presale success and a detailed roadmap, potential investors should approach with caution due to concerns over the credibility of its audit and the volatile nature of meme coins.
AnaisCairo Finance, an all-in-one DeFi platform with a unique deflationary system, is set to list on three of the top ten centralised exchanges in Q4. Will this spark the next DeFi bull run or will it fall flat?
CatherineKarak, with a $1 billion valuation, aims to revolutionise blockchain security through its restaking platform. However, past allegations of fund misappropriation during its Risk Harbor days cast doubt on its integrity and transparency.
AnaisNintendo President Shuntaro Furukawa announced the company will not use gen AI in their games. Highlighting their wealth of gaming expertise, he emphasized that technology alone cannot replicate value. Is this a dig at major firms?
Kikyo