Unexpected Development in Celsius (CEL) Case: Audio Recordings Revealed!

Celsius (CEL) A leaked audio recording in the lawsuit revealed that CEL’s co-founder and managing director, Nuke Goldstein, is considering paying off Celsius’ debt to Earn customers by issuing tokens.

Celsius Network Plans To Pay Its Debt With Crypto ‘IOU’ Tokens

Bankrupt crypto lender Celsius Network is considering a plan to convert its debt into crypto “IOU” (“I Owe You”) tokens.

CELfiled for bankruptcy in July, a month after it stopped withdrawals due to the liquidity crisis, which it blamed for “extraordinary market conditions.”

The depth of CEL’s financial problems became apparent. It was determined that CEL owed approximately $5 billion to 500,000 creditors.

Even if he sold all of his assets, including the CEL Mining project, on which CEL executives and bankruptcy lawyers had pinned their hopes of getting out of debt, he would have left a huge $1.2 billion hole in his balance sheet.

However, leaked audio of CEL’s internal meeting revealed that CEL was considering another alternative method to reimburse customers.

According to this method, CEL owes customers bitcoin, etherum and USDCIt wants to pay by converting it to another token, the IOU token.

Oren Blonstein, CEL’s chief compliance officer, told employees at the meeting, “We’re going to really work this out somehow, we’re going to get out of this somehow, at this crucial moment, what we’re going to do is with unprecedented, truly innovative solutions, and this plan is one of them.”

This plan is also similar to the recovery plan Bitfinex implemented in 2016 after an attack that drained 120,000 BTC from the exchange’s reserves.

*Not investment advice.