Celsius Network's Resurgence: From Bankruptcy to a New Crypto Frontier
Celsius Network resolves its bankruptcy, distributing $3 billion and launching Ionic Digital, amidst operational shifts and ongoing legal challenges.
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Celsius Network resolves its bankruptcy, distributing $3 billion and launching Ionic Digital, amidst operational shifts and ongoing legal challenges.
Cryptocurrency heavyweights like FTX and Celsius navigate post-bankruptcy challenges, with legal battles and regulatory scrutiny. Meanwhile, Voyager faces settlement fallout, while BlockFi stages a remarkable comeback. Genesis and Core Scientific grapple with complex legal issues. The crypto industry's financial drama unfolds with uncertainties, resembling a high-stakes poker game.
As the bankruptcy proceedings of Celsius Network reach their culmination, a concerning resurgence of phishing attacks has emerged, posing significant risks to the lender's creditors.
The current offer would mean selling the company to Farenheit Consortium, and customers getting between 67-85% of their money back.
Celsius Network had cheated customers since its foundation as a public company in the United States, which it allegedly created to avoid regulation in the United Kingdom.
One person familiar with events at Celsius reportedly said CEO Alex Mashinsky was “slugging around huge chunks of Bitcoin” and ordering trades based on bad information.
The latest turmoil has been fueled by a series of internal missteps at the company, according to former employees and internal documents reviewed by CNBC.
The bankrupt CeFi crypto lender is about $1.2 billion in deficit, with the majority of its liabilities being customer deposits some believe they may not be required to give back.
An unnamed source told CNBC that the company plans to file the bankruptcy paperwork "imminently."