Celsius Exits Bankruptcy With the Launch of a New Token

• Embattled crypto lender Celsius plans to use a new bankruptcy digital currency token to pay off its creditors. 
• Celsius has been negotiating with numerous creditor groups over how to establish the new company and token payout plan.

Celsius, the failed crypto lender, is planning to restructure the company and issue a recovery token to creditors. The plan, which was outlined by attorney David Kwasteniet in court documents, would see the company’s assets divided into two categories:

• Assets worth less than $5,000: Creditors with assets in this category would be able to withdraw their funds in full.
• Assets worth more than $5,000: Creditors with assets in this category would be issued Asset Share Tokens (ASTs) in exchange for their funds. The value of each AST would be determined by the value of the underlying assets.

Creditors with ASTs would be able to hold onto them or sell them on an open market. The plan also calls for the creation of a new company, Celsius Network 2.0, which would be owned by the creditors. This company would take over the assets of the old Celsius and continue to operate the business.

The plan is still subject to court approval, but it represents a significant step forward for Celsius. The company has been in limbo since it filed for bankruptcy in July, and this plan could help to get it back on its feet.

It is important to note that the plan is not without its critics. Some creditors have argued that it does not do enough to protect their interests. They have also questioned the value of the ASTs, which they say could be worthless.

Only time will tell whether the plan will be successful. However, it is a positive step for Celsius and it could help to prevent the company from going out of business altogether.