Wrapped Assets to be Issued by Celsius to Compensate Users

According to a newly released voice memo, Celsius Network execs are considering repaying clients by issuing freshly wrapped assets to exchange on other networks.

The co-founder and CEO of Celsius, Nuke Goldstein, seems to go into greater detail about the company’s plan to reimburse Earn consumers in the tape that Tiffany Fong published.

The earlier leaked meeting audio is attributed to Celsius’s client and public person Fong.

The Block claims that the strategy is to transfer any residual funds from Celsius designated for user repayment into wallets. The corporation will issue wrapped tokens, often referred to as Cx tokens, to indicate the ratios between the amount owed by the company and the amount it has available.

Customers are allowed to claim wrapped tokens, or they can hold out for a higher payout when new revenue comes in. As Goldstein mentioned impending mining, Ethereum (ETH) staked revenue, as well as other cryptocurrencies that could become liquid, the company made this statement. 

He made it clear that “the more you wait, there’s a better chance that the gap will be closed,” but that redeeming is always an option.

Users will have the option to exchange the wrapped coins on other platforms in addition to redeeming them, according to Goldstein. He claimed that users will be able to take their coins and use Uniswap and other exchanges to let the market determine the coins’ price.

Fong claims that she received the latest tape on September 1 instead of the leaked meeting audio.

CEO Alex Mashinsky discussed a proposal to resurrect the business, dubbed Kelvin, at a firm meeting in audio that was made public two weeks ago.

The creditor committee attested to Mashinsky’s meeting with them and his presentation of a plan. Clients’ and creditors’ interests are represented by the creditor committee during the bankruptcy procedure.

Upon stopping withdrawals in July, Celsius filed for Chapter 11 protection, claiming a severe economic environment. The court is presently hearing the case.

The company revealed that three of its business entities possessed stablecoins worth $23 million. The corporation did not specify what of its 11 distinct stablecoins it presently holds.

A legal document states that the insolvent cryptocurrency lender September 15 submitted a motion to the bankruptcy court asking for authorization to liquidate its stablecoin assets to pay for its Chapter 11 proceedings.

According to Blockchain.News, the New Jersey company plans to sell its present stablecoins as well as any further ones it could get in the future to generate cash for its operations.

The sale proceedings would mostly be used to fund Celsius Network’s activities if the move is approved by Judge Martin Glenn, the top bankruptcy judge in the United States.

In a separate move, an impartial third party was already established to investigate the finances of Celsius.

Earlier in the month, a bankruptcy judge in the Southern District of New York granted the motion made by the DOJ, securities regulators, and creditors’ counsel, but Celsius made no objections to the impartial third party’s assessment.