Celsius Network, a leading crypto lending platform, has announced plans to repay creditors by issuing a new token. The move comes as the company proposes to emerge from bankruptcy and become a regulated cryptocurrency exchange.
Their elaborate plan was revealed during a video-court hearing by the company’s attorney Ross M Kwasteniet. According to the lawyer, this would produce more funds for creditors than selling the assets that are difficult to liquidate at the available prices.
The proposal will be first put up to the creditors, including Celsius customers who have cryptocurrency stored on the company’s platform. After that, the US bankruptcy Chief Judge Glenn Martin will consider the voting results to determine whether to accept the proposal or not.
Most of the Celsius customers are happy about the decision as this move is representing the company’s commitment to transparency and fairness. Even though the CEO has been accused of misrepresenting the facts, this move is still an innovative approach to solving Celsius’s current liquidity problem.
The Feds want to regulate the crypto industry now more than ever as many investors are suffering from the fraudulent activities of the system. Overall, the move towards becoming a regulated cryptocurrency platform would be a positive step forward for defamed Celsius, as it would help to strengthen the company’s financial position & ultimately provide greater benefits for its customers. It is likely to be closely watched by other companies in the space.
Celsius & Defamed CEO Alex Mahinsky: What Went Wrong?
Celsius CEO Alex Mashinsky and his team were accused of defrauding investors out of billions of dollars through a series of illegal activities. The company, which proposed to offer a platform for lending and borrowing cryptocurrency, allegedly used funds from new investors to pay returns to earlier investors, in a classic Ponzi scheme.
The legal actions against Mashinsky and Celsius Network are ongoing, but the damage has already been done to the many individuals and institutions that trusted in the company and lost their investments.
This case serves as a reminder of the importance of thorough due diligence and caution when investing in the cryptocurrency market.