Celsius May Issue a Bankruptcy Token To Repay Creditors

Sahana Kiran
Source – MEXC

The Celsius saga has been active ever since it blocked user withdrawals back in June 2022. The company filed for bankruptcy back in July and it is currently working on several re-structuring procedures. This includes the possibility of rolling out a new token.

According to a recent Bloomberg report, the organization is considering launching a bankruptcy token to repay its creditors. The attorney representing the firm Ross M. Kwasteniet put forth this idea before the court on Tuesday. Kwasteniet highlighted that the relaunch of the platform has been discussed with its creditors.

The firm hopes to roll out “a publicly-traded company that is properly licensed.” Unlike Celsius, the relaunched version would bring money to creditors by merely liquidating the company. In addition, the relaunched or reorganized firm is expected to issue a new token. This token would further act as a “payout plan” to creditors.

Will Celsius Network go public?

It should be noted that the aforementioned plan is still in the works and more details regarding the development will be filed later this week. However, a Twitter user who goes by the username, CelsiusFacts, let the community in on more information.

Celsius Network plans to go public and employ “third-party service.” The firm is doing so to make sure it works with U.S. financial standards, as per its latest statement. Users may withdraw up to $7,500 in claims, or 95% of the total, whatever is the less amount.

In addition, it was revealed that the network is considering a planned recovery in which investors with holdings below $5,000 “might get all assets to leave.” Large holders, on the other hand, will reportedly get the debt token.

However, the Celsius Network is contemplating another extension to further enhanced the aforementioned process. The plan is complicated and they may have only one chance at proper execution.