Bankrupt crypto lender Celsius Network appears to be considering a plan to turn its debt into crypto “IOU” (“I Owe You”) tokens.
Celsius filed for Chapter 11 bankruptcy protection in July, a month after halting withdrawals because of a liquidity crisis it blamed on “extreme market conditions.” Subsequent bankruptcy proceedings in the Southern District of New York have revealed the depths of Celsius’ financial troubles: The lender owes 500,000 creditors nearly $5 billion.
Even if Celsius sold all of its assets – including its mysterious, half-finished mining subsidiary, Celsius Mining that Celsius’ executives and bankruptcy lawyers have pinned their hopes on to get out of debt – it would still be left with a $1.2 billion hole in its balance sheet.
Instead, a leaked audio recording of an internal Celsius meeting – shared by Celsius customer and YouTuber Tiffany Fong – indicates that Celsius is considering an alternative method for repaying customers: wrapping the bitcoin, ether and...
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