Cryptocurrency

Celsius Could Relaunch as a Publicly Traded Company

Alongside the release of a new token that might be used to pay back creditors.

Cryptocurrency

Celsius Could Relaunch as a Publicly Traded Company

Alongside the release of a new token that might be used to pay back creditors.

Celsius, the lending platform that blocked users from withdrawing funds in June of 2022 and then filed for bankruptcy in July, is now looking to potentially come back as a publicly traded company — with reports of a possible new “celsius token” in the works as well, according to Bloomberg.

The report originates from a January 24, hearing where Celsius attorney Ross M. Kwasteniet shared with the court that the platform was negotiating with creditors on how best to relaunch and restore funds to them.

Kwasteniet added that the relaunched platform would be “a publicly-traded company that is properly licensed,” which he argued would bring greater value to creditors than a complete liquidation. This plan also included the potential issuance of “a new token to creditors as part of a payout plan.”

While details are still scarce, Bloomberg’s report did share that the plan will be filed with the court later in the week of January 25.

As first shared by Cointelegraph, a Twitter account by the name of CelsiusFacts has shared what it says is further information on the reorganization plan.

This includes the use of “third-party services” to ensure compliance with U.S. regulators. More importantly, there are also purports that users may be able to withdraw up to $7,500 USD worth of claims or 95% of the total value — whichever amount is smaller — with the new token being issued to make up the remaining amounts.

Since the whole meltdown of Celsius, users have been eagerly awaiting the ability to withdraw their funds with very slow-moving progress. On January 5, 2022, the New York Attorney General filed a suit against the platform, on the alleged claim that its former CEO Alex Mashinsky gave “false and misleading statements” to investors.

While retail investors are surely very wary and potentially disinterested in a new Celsius token, the relaunch could bring them one step closer to being made whole.

In other news, the UK explores the possibilities of a digital pound.

You may also like

Aftermath Following Celsius Collapse Continues To Unfold
Cryptocurrency

Aftermath Following Celsius Collapse Continues To Unfold

Now hopefully with a light at the end of the tunnel.
Could Twitter Become a Web3 Native Platform with a16z's Help?
Cryptocurrency

Could Twitter Become a Web3 Native Platform with a16z's Help?

Or does the firm’s interest put the platform at risk of centralized controllers?
Could the Collapse of FTX Present a Regulatory Silver Lining?
Cryptocurrency

Could the Collapse of FTX Present a Regulatory Silver Lining?

As events before and after the fall of the exchange have made clear a large number of industry gaps and uncertainties for crypto.
Cool Cats Rebrands as a Multigenerational Entertainment Group
NFT

Cool Cats Rebrands as a Multigenerational Entertainment Group

With plans for a new multi-chain collection, gamified experiences, and strategic partnerships — starting with a limited edition Ledger.
More ▾