Celsius’s Creditors Consider Their Options After The Examiner’s Report

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

34 mins ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

4 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

6 hours ago

OpenSea New Version Will Be Launched In December

OpenSea new version is scheduled to launch in December, with an improved user experience, improved…

6 hours ago

This website uses cookies.