Celsius has come up with a different idea for the people who use their services. They want to give them a chance to own a part of a new company. This new company will be supported with lots of money and won’t owe a big amount of money to others.
On August 14, a crypto lending company called Celsius Networks, which is dealing with financial problems, got the permission from a judge to ask the people who use their service about a new idea. This idea is about paying back around $2 billion in Bitcoin and Ether to the users, but through a new company that the users themselves will own.
The judge, whose job is to decide things fairly, said that he will send out forms to the Celsius users so they can vote on this idea. These forms will have clear explanations of what the company wants to do to give the users their money back.
Judge Glenn wants to make sure everything is clear before saying “yes.” He wants to know more about how the crypto world’s ups and downs might affect Celsius. He’s also curious if there could be any problems with the company’s crypto-mining activities.
People who are owed money by Celsius have different opinions. Some are not happy with the plans for paying them back, and they’ve said so. Other people who gave money to Celsius have raised questions about the plans too.
Celsius Networks’ New Plan and Future Hopes
A company called Celsius Networks, which is having money troubles, came up with a plan to pay back the people it owes. Another group named Arrington Capital and a team called Fahrenheit LLC, which took over Celsius when it went through some problems earlier, are leading this plan.
The idea is that the people who should get paid back will get a part of a new company instead of money. This new company will take care of Celsius’ activities like mining crypto and handling things like big loans and investments, including a lot of valuable cryptocurrencies. The court papers say that if this plan goes through, people who lent money to Celsius might get back more than 85 cents for every dollar they’re owed.
This new company is supposed to have a lot of money and not owe too much. It might also become the first company that owns a good amount of both Bitcoin and Ethereum and is listed on the stock market. Plus, the plan says that the people who are owed money might also get around $2 billion worth of special crypto tokens.
Celsius’ lawyer, Chris Koenig, says they’re working hard to start paying people back by the end of 2023. But the judge, who makes sure things are fair, says there’s still more to do in this situation.
Celsius Creditors Raise Concerns
At a meeting, the people who use Celsius were not happy with how the company plans to pay them back, says Bloomberg. They don’t like the idea of getting shares in a new project that’s not very clear. Some customers even want their CEL tokens returned. They don’t agree with the company’s thought that each CEL token is worth 25 cents.
But the judge, who makes decisions, said that the customers won’t get those CEL tokens back. This is because the Securities and Exchange Commission, a group that makes sure things are fair in finance, said CEL tokens are like stocks in a company. When a company has money problems like Celsius, these stocks usually become less valuable. The judge explained that CEL tokens can’t be given back because they depended on how much Celsius was worth. He also said that after the money trouble is settled, Celsius won’t be around anymore.
Just a while back, the person in charge of Celsius, Alex Mashinsky, was accused of doing some dishonest things and messing with the value of CEL tokens to make them look better.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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