Crypto lending platform Celsius Network had filed for bankruptcy on July 13. A month prior to that the crypto lender had ceased withdrawals along with transfers from accounts. Celsius representatives appeared in court which is in relation to the company’s bankruptcy hearing.
It has now disclosed through a presentation what its next step towards recovery would be. The crypto lending platform has worked to provide a financial oversight in order to procced with restructuring. This document that Celsius has prepared, mentions how it shall form a plan to allow the users to take cash or choose for ‘long crypto’.
This presentation provides alternatives for the users to get their money back. The platform has also spoken of making use of Bitcoin mining operations along with third-party asset sales to gather funds and pay the debt back. In this recovery plan, the crypto lender Celsius has also presented ways such as negotiating the restructuring transaction with stakeholders.
Crypto Lender Divulges The Recuperation Plan
The plan put forth by the lending platform was extensive in nature and it completely structures the way the company wants to address the crisis. It presented a thorough plan of returning the funds back to the creditors.
According to plan, crypto lender Celsius is aiming to use Bitcoin minted by minting operations that shall aid mining operations which will help grow Bitcoin holdings.
Recently, it has also been reported that Celsius received permission from the US bankruptcy judge Martin Glenn to spend close to $ 3.7 million to construct a Bitcoin mining facility. Additionally, a $ 1.5 million on customs and duties are also to be paid on the imported customs mining rigs.
Lawyer of Celsius, Patrick Nash mentioned to judge Martin Glenn that mining might pave a way to help the company. Celsius had ceased crypto lending, repaying customers whose assets were frozen before the bankruptcy was filed.
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Crypto Mining Has Potential
Patrick Nash mentioned that recovery plans do not include undergoing total liquidation. According to him, the lender does not intend to force their customers to take their recovery in fiat currency.
As the crypto market downturn continues, Nash is of the opinion that users would choose to go long in this crypto winter. Users shall also have the “opportunity to realise their recovery” once the broader macroeconomic conditions start to look up.
Patrick Nash added,
In a world where the crypto market rebounds, the mining business has the potential to be quite valuable.
The crypto lender had filed for Chapter 11 and listed a $ 1.19 billion deficit on its balance sheet. The business model which Celsius operated was severely inspected after a sell-off that occurred owing to downfall of important tokens such as terraUSD and Luna two months ago.
Although a lot of priority has been given to Bitcoin mining, a group of equity investors have expressed concerns over a problem which could arise in order to control the Bitcoin mining operations.
Investor’s layer, Dennis Dune spoke of how the recently mined coins should be accounted as property of the UK subsidiary which is responsible in raising funds for the operations and not being distributed for the advantage of the company’s creditors.
Additionally customers could also create objection on Bitcoin mining vendors during a time when the platform is struggling to recover as mentioned by the U.S. Department of Justice’s bankruptcy watchdog.
Related Reading | Celsius Network Lawyers Argue That Users Have No Right To Their Crypto
Featured image from The Hindu, chart from TradingView.com