Celsius Network Reveals Plans To Compensate Depositors Despite Massive $1,190,000,000 Balance Sheet Deficit

The centralized financial (CeFi) platform Celsius Network has revealed plans to compensate users whose funds are not yet available for withdrawals.

A platform for filing in the Southern New York area of the U.S. Bankruptcy Court To tell Total assets are $ 4.3 billion and liabilities are $ 5.5 billion.

The Celsius Network, which recently filed for bankruptcy, says one way to fill the $ 1.19 billion hole in its balance sheet is to sell mint bitcoin (BTC) from the mining industry.

“To fill this gap in the balance sheet, we hope to build a consensus on the potential of debtors, including the official committee of unsecured creditors (mostly including users). We plan to have a productive dialogue with our supporters, Chapter 11. [bankruptcy] A restructuring plan, and ultimately a transaction that maximizes the value of the company’s business for the benefit of the company’s creditors.

One way for debtors to try to reach this goal is to use Bitcoin “mint” by mining to address the current cryptocurrency shortage. “

According to the Celsius Network, Celsius Mining LLC, the crypto mining division of the CeFi platform, predicts that it will generate about 15,000 Bitcoins in 2023, worth more than $ 310 million at the time of writing.

The Celsius Network says it may sell some of its assets or seek strategic investors as part of its restructuring.

“The debtor aims to provide users with choices and submit plans that allow Celsius to return to normal operation. To fund the recovery of the plans, we are one. We may sell these assets or consider investing from third-party strategic or financial investors in exchange for “reorganized” Celsius shares. “

As of this month, there were hundreds of thousands of active users with accounts over $ 100, according to the CeFi platform.

“By July 2022, Celsius will have about 1.7 million registered users and about 300,000 active users, with an account balance of over $ 100, assets of about $ 6 billion, and a new stock of Debtor Celsius Mining LLC. I was preparing to go public. “

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Featured images: Shutterstock / ARTEMENKO VALENTYN / Jurik Peter