Celsius’s Revival Plan
A newly leaked recording of Celsius ‘s management details more about executives’ proposals to return funds to customers, including the issuance of new wrapped tokens for trading on other platforms.
The company’s co-founder and CTO Nuke Goldstein seem to offer a deeper explanation of Earn’s customer repayment in the recording posted by Tiffany Fong.
Accordingly, the idea is to transfer the remaining Celsius funds allocated to repay customers into wallets, then issue wrapped tokens, called Cx tokens, to represent the ratio of the amount owed by the company to the amount the company has on hand.
For example, customers waiting to redeem their Bitcoin will receive CxBTC tokens. Customers can redeem their wrapped tokens or wait for a larger payout when additional revenue is available.
Goldstein pointed to the upcoming mining, placing revenues on ETH and other coins that could become liquid.
“So the more you wait, there’s a better chance that the gap will be closed. However, you can always redeem.“
In addition to the acquisition mechanism, Goldstein said Celsius plans to allow trading for wrapped tokens in other locations. Users can withdraw their tokens and transfer them to Uniswap or other platforms and allow the market to set the price of tokens.
Negotiations with creditor committee
Representatives for Celsius and the creditor committee did not immediately respond to requests for comment.
Fong said she obtained the recording on Sept. 1, before receiving the leaked joint meeting recording.
Because of the delay, Fong noted that Celsius’s plans may have changed in the days since she received the application.
Celsius joined the Chapter 11 lawsuit in July 2022 and has since gone through the bankruptcy process with clients hoping to return their assets. Two weeks ago, a recording of CEO Alex Mashinsky circulated in which he detailed plans to revive the company, codenamed Kelvin, at a company meeting.
The creditors’ committee, which represents the interests of customers and creditors during the bankruptcy process, confirmed that Mashinsky met with them and presented a proposal. However, the committee declined to publicly comment on the proposal.
Attorney for the creditor committee, Gregory Pesce told the court at the time that the team was in talks with Celsius and wanted the company to submit a full plan to the court.
During that hearing, a judge ruled to appoint an outside examiner to conduct an investigation into Celsius’s management and finances — a rare measure deemed necessary due to perceived inconsistencies in executives’ reports and “financial irregularities.”