Celsiusthe cryptocurrency company that recently filed for bankruptcy due to a heavy loss of assets due to the Luna and Terra crisis, will put a plan in place to repay the money they are still withholding from most of their customers.
This was confirmed by the American News Network CNBCwho explained that the information on the “IOU diet” was filtered through audio recorded during a meeting between the company and clients whose funds are still frozen.
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Next, we explain how this plan would work, which is currently at the start of the application period and may take some time to fully release for all of its customers.
how is the celsius plan
As explained in the audio, the idea is to give its 500,000 customers frozen funds the possibility of unlocking said assets by means of a new token in the form of debit (called IOU Token according to the audio).
It will have a stable value based on two factors: the money Celsius owes the user and the amount of assets the company currently has to repay the money.
With them, a percentage is formed that represents the amount of money that corresponds to each user.so it would increase or decrease depending on the assets it has at that time in degrees Celsius.
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Although it is a risky investment, Nuke Goldsteinco-founder of the company, ensures that Celsius has sufficient income to be able to return all the money it owes – mainly for its mining activity, its Ethereum tokens and other currencies that will be used to obtain liquidity –.
what happened to celsius
It is worth recalling that in July this year, Celsius officially declared bankruptcy after more than a month with all accounts on its platform frozen and a rather disturbing radio silence.
As platform users feared the owners would disappear with the money, the bankruptcy filing was a breath of fresh air to determine the way forward.
The declaration of Celsius announced that the company had voluntarily initiated the procedure for Chapter 11 US Bankruptcy Law (Chapter 11, Title 11, United States Code) for the purpose of stabilize your operations.
“Today’s presentation follows difficult but necessary decision by Celsius to suspend withdrawalsexchanges and transfers on your platform last month to stabilize your activity and protect your customersthe company’s board members said at the time.
With this, Celsius thus becomes the third crypto company to declare bankruptcy three Capital of the Three Arrows (3AC) Yes TravelCapital. “This is the right decision for our community and our business,” said alex mahinskyco-founder and CEO of Celsius.