- Crypto lending company Celsius went bankrupt a year ago, and it is still one of the worst news to crypto. To add to its problems, the SEC accused Celsius of selling illegal securities.
- But recently, they want to make a comeback. They are doing so by seeking approval to pay off customers they owe.
Celsius bankruptcy was one of the darkest periods in the crypto industry. Since going bankrupt, the case is mainly between Celsius investors that want their money back. The amount which the platform owes its investors is quite huge. However, it seems Celsius lending made some progress after entering talks for a new deal. This deal is quite huge, as it is crucial for the lending platform to make a return.
How Much is Celsius Owing Investors?
According to their bankruptcy filing, Celsius owes quite a lot of money. Their filing said they owed more about $4.7 to its investors. Even worse, some of the top investors affected had their own scandals.
One of their top 50 creditors was Sam Bankman-Fried’s trading firm Alameda Research. SBF’s FTX and Alameda Research are also facing bankruptcy cases too. Additionally, Celsius’s bankruptcy filing showed they had more than 100,000 creditors while still operating. But there are speculations that only the top creditors might have their money back. On the other hand, Celsius is negotiating a deal that might see them settle all their customers.
But creditors aren’t the only ones Celsius is owing due to bankruptcy. From the charges against them, more than 30,000 customers involve themselves in the case. The total amount of money reportedly owed them is $78 billion.
Celsius’s Lending Platform Negotiating With Court
Celsius entered into full negotiations with the court, which seems to be going well. The whole point of the talks is to find a way of settling their customers. The court will grant and approve their agreement on 10th August.
Also, there’s a restructuring plan, and it even gets better. The Celsius lending restructuring plan will have its hearing in October. Assuming it is successful, then we might see the Celsius lending platform come back to life.
More Trouble for Celsius Lending Platform
While they reach a new settlement agreement with the court, Celsius still has trouble. This is because the Securities and Exchange Commission charged them with fraud and illegal business.
They accused Celsius of manipulating their native token, fraud, and illegal trading of securities. The parent company isn’t the only one involved in the SEC case. Also, the company’s former CEO, Alex Mashinsky, is among the defendants in the case.
Conclusion
Undoubtedly, the Celsius lending platform is heading in the right direction. If they get the agreement done by August 10th, they have a chance of coming back. The next process will be their restructuring hearing. And its success might mean a full-blown return.
If Celsius should make return, it will be with mixed feelings. I’m not feeling good about them.