The restructuring plan for crypto-lending platform Celsius Network includes the issue of wrapped tokens. This was reportedly stated by the company’s co-founder and CTO, Nyuk Goldstein.
— ALLEN (@aryeh_newman) September 21, 2022
A client of the platform, Tiffany Fong, posted an audio recording she received from an anonymous source with a voice believed to belong to Goldstein. Thereupon, he announced a plan that Celsius would issue a family of packaged tokens for customers’ locked-in funds.
For example, users waiting to return bitcoins will receive CxBTC tokens. The latter will represent the ratio of the platform’s liabilities to the cryptocurrency on its balance sheet.
Clients can redeem tokens or wait for larger payouts when additional revenue emerges from mining, staking, and upcoming Ethereum asset sales that may become liquid.
The proposal must be approved by the court.
“The longer you wait, the more likely you are that the reduction will be eliminated. You will always have a buyback option.” Goldstein explained.
In addition to the buyback mechanism, Celsius plans to provide the ability to trade wrapped tokens on platforms like Uniswap.
As a reminder, on June 13, the cryptoloan platform suspended fund withdrawals, exchanges and transfers between accounts.
A month later, Celsius and some affiliated structures filed for bankruptcy pursuant to Chapter 11 of the United States Bankruptcy Code.
In August, the US Trustee Office announced that Father “many questions” to management Prior to this, the Financial Times reported on the intervention of the platform’s CEO, Alex Mashinsky, in setting up the trading strategy, which was expensive “millions of dollars”.
In September, Mashinsky expressed a plan to save the company from bankruptcyaccording to the media.
Formerly Celsius Network submitted a request for the sale of stablecoins.
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