Following the move of drafting a chapter 11 bankruptcy, lending protocol, Celsius Network, which has been faced with liquidation challenges since the onset of the crypto bear market, has openly declared details of its reorganization proposal in a hearing.
The firm disclosed that it has detached itself from situations in which it previously utilized borrowed funds and set security to a mediator. It also divulged that the majority of its digital property keys are stocked on Fireblocks, with no reliance on a middle agent to secure the keys.
Celsius Network is partially dependent on bitcoin mining accruals to finance its debt settlement. The platform is in charge of over 80,000 mining rigs, of which 43,000 are still functioning regardless of the insolvency filing drafted by the company mining department.
Also, the firm is evaluating property trades as well as third-party financing alternatives. Mining rigs are currently a fraction of the company’s possession, and trading them could harm the asset which is reported to be already declining in value.
The protocol also plans to offer customers an option to recover either cash at a discount or remain ‘long’ in crypto.
On June 13, the company published its plan to suspend withdrawals, staking, and other investment actions due to “extreme market conditions. Viking reports indicate that the company has incurred over $5.5 billion, with $4.7 billion being owed to clients.