Celsius Now Comes Out A Recovery Proposal In A Last-ditch Effort To Repay Customers

Key Points:

• The committee discussed the firm’s suggested recovery corporation model, but also stated that it was looking into other solutions.
• The Celsius Official Committee of Unsecured Creditors, which represents creditors’ interests, held a Twitter town hall.

Despite a critical assessment from a court-appointed examiner, lawyers for former Celsius customers said they are still in talks with the company about a “recovery corporation” idea put up by Celsius’s lawyers in a last-ditch bid to partially refund them, according to The Block.

Despite evidence in the investigation released previously indicating significant self-dealing and over-leveraging, the Celsius Official Committee of Unsecured Creditors held a Twitter space town hall.

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 an asset share token that would reflect the value of the assets managed by the Recovery Corporation.

A UCC attorney expressed disappointment that information about bids for Celsius leaked last week and added that the committee is also running down a number of other choices in particular.

High-profile Celsius creditor Tiffany Fong admitted on Twitter that she had released details of offers made for the company’s assets. Among the bidders were Binance, Bank to the Future, NovaWulf, Cumberland/DRW, and Galaxy Digital.

Fong stated on Twitter in response to a statement made by investor Simon Dixon that before disclosing the offers, a senior employee was explicitly questioned as to whether the bids were still on the table. she purposely didn’t reveal them because she didn’t want to interfere with the bidding process.

Another possibility being considered by the UCC is the sale of Celsius’s mining operation, according to a committee spokesperson. The committee is also considering “winding down Celsius or transferring the cryptocurrency to a third party,” according to the lawyer.

CEL, the lender’s native token, which was highlighted throughout the examiner’s report, was also brought up by listeners. Celsius spent at least $558 million on CEL, according to the investigator.

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