The Celsius community has been in disarray since the crypto lender halted all withdrawals from the platform and filed for chapter 11 bankruptcy. It’s estimated that Celsius went under with more than $10 billion of customers’ crypto assets.
While the losses led to reported cases of depression, property loss, and even suicide among Celsius’s customers, many of them have banded together to do bits to ensure they get their funds back.
On Tuesday, a member of the Celsius community presented what he described as a “newly broadened Celsius tokenization and reorganization plan.”
Paul Ditter, founder and CEO of Broad Pro Trust Company used a Twitter thread to outline the summary of his proposal. The plan aims to tokenize all of the crypto company’s assets and business activities, including its Bitcoin mining operation and its cybersecurity subsidiary, GK8.
Ditter’s proposal would give Celsius community members beneficial rights to the company’s underlying assets and the net yield generated across the Celsius ecosystem. Additionally, Ditter’s plan calls for the full and immediate reparation of all CEL tokens lost through loan liquidations. This, according to Ditter, would help the crypto company recover, sustain itself, and redistribute its long-term value to the community.
Ditter claims the plan has already been presented to the Unsecured Creditors Committee (UCC) for consideration. He hopes the Celsius community will vote to make it a reality when the time comes.
Elsewhere, the Celsius community is battling a super-whale trying to short-sell the CEL token. The whale spent $100 million in one day in a bid to push down CEL prices.
According to @otisa502, a member of the #CelShortSqueeze campaign on Twitter, the whale is trying to fulfill a 20 million buy order for CEL tokens on FTX and other major crypto exchanges for $0.01.
@otisa502 feels that if the whale is allowed to succeed, he could scupper Celsius’s recovery plans by crashing the market or creating enough FUD to force other CEL token holders to dump their coins.
The CEL campaigner is urging other CEL holders to join together and bankrupt the whale or make it untenable for him to keep his position open.
In the last two months, sustained short-squeeze campaigns by CEL holders saw the coin’s price rise by a whopping 4,000%. In June, CEL was trading at a low of $0.093, but two months later, it had reached a high of $4.50 following concerted efforts by the community to fight off short sellers.
U.S. Trustee Office Calls For Independent Examiner
And finally, a representative of the Justice Department watchdog overseeing Celsius’s bankruptcy proceedings has filed a motion asking the bankruptcy court to appoint an independent examiner.
According to Shara Cornell, Celsius has not been forthcoming with the U.S. Trustee Office regarding its business operations. Cornell also claimed that there was no understanding between Celsius, its customers, and interested parties in terms of the actual amount the company held.
Cornell suggested that the most prudent course of action was to appoint an independent examiner to provide unbiased answers and much-needed transparency in the bankruptcy case.
Sourced from crypto.news.
Written by Wayne Jones on 2022-08-25 08:00:00.
