In the present bankruptcy hearing of Celsius Network (defunct lending firm), it has disclosed a strategy to quit the procedure. The firm plans to rebrand itself into an openly traded recovery business. The lawyers stated that if the strategy is authorized, creditors having locked assets over an undetermined peak point will get a token named the Asset Share Token (AST).
Celsius’ Plan for Recovery Becomes Controversial, Community Reacts
Interestingly, the AST to be obtained will denote the worth of the receivers’ assets. The holders would be permitted to yield dividends. In addition to this, they will also be allowed to trade them on the public market. Nonetheless, the strategy has not been welcomed by the overall crypto community. The commentators have labelled it as a likely scam. Specifically, “Crypto_Tolkien” (a Twitter consumer) noted that the reorganization of the firm is just a scam.
The person questioned the release of a unique token rather than the already deposited crypto assets of the investors. The Twitter user mentioned that this move is being made by the management of the Celsius to steal additional funds from the investors which are locked on the platform. However, the user added, the valueless “NEWCO” token will be given in return for Link, ETH, or Bitcoin tokens.
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On the 29th of January, the Twitter user said in a Tweet that the company intends to block any other strategy from being contemplated besides their plan. A noteworthy thing here is that the threshold for launching the new token has yet not been specified. The lawyers from Celsius are of the view that they are currently engaged in discussions with the Unsecured Creditors Committee (UCC) over the issue.
As a result, Crypto_Tolkien asserted that a couple of bodies are making a strategy to take away money. He said that the UCC and Celsius’ current plan is to get the funds that the investors extracted from the platform during the ninety days before the bankruptcy filing of the company.
Company Fails to Receive Appropriate Bids
He added that both entities do not care whether the investors utilized those funds to recompense hospital bills or taxes. In the words of Celsius, the recovery option was explored following the firm’s remained unsuccessful in getting adequate bids. Nevertheless, it clarified that the recovery would not be complete.