Celsius plans strategic recovery by going public and complying with US regulators

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Altcoins
Celsius plans strategic recovery by going public and complying with US regulators

Celsius is planning to come back after its collapse in mid-July last year. Part of the recovery processes will entail the company complying with SEC regulations in the US and going public, offering tokenized shares that pay dividends.

Celsius in plans to refund creditors

According to a tweet by CelciusFacts, an account that follows the bankruptcy case, the crippled firm plans to refund all token holders with 5k or less locked up in the company’s accounts. Creditors with less than $7.5k can withdraw up to 94% of their funds. Large holders will receive a tokenized debt digital asset equivalent to the amount withheld by the firm. 

The large creditors can sell the debt token if they still believe the company will not recover from its financial derailment. Moreover, digital assets sent to the platform after the filing will also be refunded to the depositors. 

Celsius filed for Chapter 11 bankruptcy protection against creditors in mid-July 2022. At the time, the company reported having $1 billion in assets and $10 billion in liabilities with more than 100,000 creditors. Celsius is reportedly unwilling to liquidate its digital assets to competitors and other major industry players at a discounted rate that will limit the chances of its recovery.

Celsius is likely to go public

According to CelsiusFacts, the defunct digital asset lending and borrowing firm will also go public with tokenized shares that pay dividends to shareholders. The company also plans to comply with all US SEC regulations on lending and borrowing cryptocurrencies. @CelsiusFacts also highlighted how the firm would recruit third parties to help in compliance as Celsius begins its cleaning process. 

The news comes days after reports revealed the company had withdrawn 1.1 million ADA and 1.1 million MATIC that was held on GK8 in preparation for liquidation to Galaxy Digital.

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Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.