According to Celsius’ reorganization plan, Celsius has reduced its total assets by $17.8 billion since March 30, the scale of user withdrawals has reached $1.9 billion, the market value of currency holdings has fallen by $12.3 billion, and the amount of cryptocurrency has been liquidated by a third party (Tether). $900 million, $100 million in losses on cryptocurrency investments, $1.9 billion in loans, and only $4.3 billion in assets now.
Celsius said that the next planned restructuring plan includes the hope that its mining subsidiary will continue to produce bitcoin to finance its mining operations and expand its bitcoin holdings; consider selling assets and seek third-party financing opportunities; Chapter 11, Giving creditors a discount to receive cash payouts, or continuing to hold cryptocurrencies for a long time, maximizing shareholder returns and restructuring Celsius’ business.
Celsius noted that Celsius Mining LLC, the mining subsidiary of Celsius, currently manages more than 43,000 mining machines and plans to manage 112,000 mining machines by the second quarter of 2023.
Celsius mentioned that it had taken proactive steps to protect its assets prior to filing for bankruptcy, such as closing most positions borrowing from third parties and providing collateral; almost all Celsius assets are stored on Fireblocks; no longer relying on intermediaries institutions to hold their private keys; new loans, cryptocurrency exchanges and transfers between customers have been halted; loan accounts have been frozen, and any loan liquidations have ceased; and any new investment activity has been suspended.
However, Celsius users may have to wait years to get their money back after Celsius files for bankruptcy and reorganization. According to “CryptoSlate” report, multiple bankruptcy lawyers believe that there is little precedent for large cryptocurrency companies to file for bankruptcy protection, coupled with the ongoing litigation against Celsius and the complexity of filing for bankruptcy protection, the bankruptcy reorganization process may be lengthy, even for several years.
But former U.S. Commodity Futures Trading Commission (CFTC) chairman J. Christoper Giancarlo said the Celsius bankruptcy hearing is expected to bring greater legal clarity, marking the first time a federal bankruptcy court has stepped in in a cryptocurrency collateral-related bankruptcy case Milestones in the evolution of the cryptocurrency category, the regime followed by bankruptcy, will be more clearly clarified.
Post time: Sep-05-2022