©Reuters
NEW YORK – In a recent development, Celsius Network, a cryptocurrency lending company currently navigating Chapter 11 bankruptcy proceedings, disclosed the disappropriation of $206,300, or approximately $470 million. This move is part of a strategy to manage creditor repayments and cover costs associated with ongoing restructuring efforts.
The company indicated that it would use staking rewards and its liquidity to meet these financial commitments. Against this backdrop, former CEO Alex Mashinsky is facing legal issues, as he was arrested in July on fraud charges. He is accused of providing misleading information about the financial stability of Celsius Network. As a result of these allegations, a court decision was issued to freeze Mashinsky’s assets.
As part of the reorganization plan, Celsius Network has initiated the formation of MiningCo, a new entity in which creditors will hold shares. Additionally, the company has outlined plans for “NewCo,” a venture that will focus on future staking and mining operations. This change in strategy comes as the company seeks to navigate the complexities of bankruptcy and find a sustainable path forward.
Ethereum, a key asset in Celsius Network’s portfolio, was valued at $2,250 per unit on January 5, 2024. The performance of the cryptocurrency is closely followed by investors and industry observers, given its importance in the digital asset market.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.