Celsius Floats Méiglechkeet vu Schold Token fir Gläubiger ze bezuelen; Séchert d'Geriicht Genehmegung fir d'Veraarbechtung vu Clientsausträg

The defunct crypto lender Celsius is exploring the possibility of creating a debt token to repay creditors. The plan would need to be approved by regulators, but if approved by the trustee and financial authorities, the debt token would be called an “asset share token (AST).”

Celsius Proposes ‘Asset Share Token’ as Plan to Repay Creditors, Subject to Regulatory Approval

verschidde Rapporten, abegraff en redaktionnellen about the subject published by Bloomberg on Jan. 24, reveal that Celsius lawyers have detailed that the bankrupt company would like to become a publicly traded recovery corporation that could issue a debt token in order to repay creditors.

Entspriechend zu Celsius attorney Ross M. Kwasteniet, the plan and the new asset would be called an “Asset Share Token” (AST). More specifically, Celsius creditors who meet certain threshold requirements would be eligible to receive the AST. Reportedly, this is not the first time Celsius has thought about issuing an IOU token.

Executives allegedly d'Iddi geflunn to creditors back in September 2022. Leaked audio files summarizing a Celsius IOU token idea indicated that the IOU tokens would be similar to the AST concept. Tokens would essentially represent a ratio of what customers are owed and what the firm has left on its balance sheet.

The Asset Share Token (AST) won’t give creditors full recovery and they would receive a haircut on what they are owed. According to Celsius attorney Ross M. Kwasteniet, while it may not be a complete recovery, the proposal would be beneficial to creditors looking for liquid assets. He mentioned that the AST would be readily tradable, similar to many of the crypto assets today.

Bankruptcy Judge Approves Withdrawal Request

The news follows New York Attorney General Letitia James eng Klo against Alex Mashinsky, the co-founder and former CEO of Celsius, for allegedly misleading investors. The same day, the New York-based bankruptcy court ruled that Celsius gehéiert d'Rechter to depositor funds.

Dënschdes Geriicht Areechungen further show that Celsius has been approved to process a fraction of customer withdrawals. The bankruptcy court also gave Celsius erlaabt to distribute airdropped flare (FLR) tokens to customers who held XRP.

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What do you think about Celsius’ proposal to repay creditors through the use of an ‘Asset Share Token’? Share your thoughts in the comments below.

Vum Jamie Redman

Jamie Redman ass den News Lead bei Bitcoin.com News an e Finanztech-Journalist, deen a Florida wunnt. Redman ass en aktive Member vun der Krypto-Währungsgemeinschaft zënter 2011. Hien huet eng Passioun fir Bitcoin, Open-Source Code an dezentraliséierter Uwendungen. Zënter September 2015 huet Redman méi wéi 6,000 Artikele fir Bitcoin.com News geschriwwen iwwer déi disruptive Protokoller déi haut entstinn.