Crypto News: As the digital asset industry deals with heavy selling pressure, Bankrupt crypto lender Celsius Network LLC rolled out its Reorganization Plan. Court filings depict that the defunct crypto lender is looking to sell all of the altcoins from its customers.
Also Read: XRP, Ethereum Leads Sell Off As Crypto Market Bleeds
Celsius Looks To Dodge Collateral Return
As per Celsius’s Reorganization Plan, it will sell all customers’ altcoins excluding custody and withhold accounts holdings. It mentioned that the process will start on July 1st, 2023. However, the amount recovered from the altcoin sale will be converted into Bitcoin and Ethereum.
This development comes after the bankrupt crypto lender’s announcement of choosing Fahrenheit’s proposal in a bid to handle a new entity that is decided to be owned by its creditors.
However, David Adler, Bankruptcy Partner at McCarter & English stated that a segment of borrowers represented by him in the case might file an opposition to this plan. It is expected that Celsius might not return their collateral. Read More Crypto News Here…
Adler highlighted that the debtors in the case elected to treat the Retail Borrow Claims through the Set Off Treatment. He added that the debtors are demanding repayment of the loans but they have no intention to perform their contractual obligations.
As per the bankruptcy partner, Celsius’s proposed treatment is violating both state and federal consumer lending laws in the country. Thus they will be opposing this plan in court. He added that Celsius was required to extend exclusivity so they filed the plan shortly after filing the motion.
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