• Celsius Network has announced plans to repay creditors by issuing a new token.
• The proposal will be first put up to the creditors, including Celsius customers who have cryptocurrency stored on the company’s platform.
• The Feds want to regulate the crypto industry now more than ever as many investors are suffering from the fraudulent activities of the system.
Celsius Network, a leading crypto lending platform, has recently announced its plans to repay creditors by issuing a new token. This move comes as the company proposes to emerge from bankruptcy and become a regulated cryptocurrency exchange. Their elaborate plan was revealed during a video-court hearing by the company’s attorney Ross M Kwasteniet.
According to the lawyer, this would produce more funds for creditors than selling the assets that are difficult to liquidate at the available prices. The proposal will be first put up to the creditors, including Celsius customers who have cryptocurrency stored on the company’s platform. After that, the US bankruptcy Chief Judge Glenn Martin will consider the voting results to determine whether to accept the proposal or not.
Most of the Celsius customers are happy about the decision as this move is representing the company’s commitment to transparency and fairness. Even though the CEO has been accused of misrepresenting the facts, this move is still an innovative approach to solving Celsius’s current liquidity problem. The proposal will also benefit creditors who are not part of the platform but have lost funds due to the company’s poor performance.
The Feds want to regulate the crypto industry now more than ever as many investors are suffering from the fraudulent activities of the system. The issuance of the new token will ensure that the investors‘ funds are protected and that the interests of the investors are safeguarded. This move from Celsius Network is a step in the right direction and sets an example for other companies in the industry.
The new token will be based on the Ethereum blockchain and will be used to repay creditors over time. The token holders will be able to trade their tokens on the exchange and in the open market. Furthermore, the tokens will also be used to pay investor dividends and bonuses.
Overall, this move from Celsius Network is a beacon of hope for the crypto industry. It shows that the industry is willing to take responsibility for its actions and that it is dedicated to protecting the interests of its customers. This move will also be beneficial for the Feds as it will help them to regulate the industry and protect investors from fraudulent activities.