BnkToTheFuture, one of Celsius Network‘s leading investors, has submitted three proposals that could help solve the firm’s liquidity issues and save it from bankruptcy.

#DepositorsFirst Celsius Recovery Plan https://t.co/YkGy3N0Gwd

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 30, 2022

The CEO of BnkToTheFuture, Simon Dixon, shared the proposals on Twitter. The proposals involve relaunching or restructuring the platform or getting Bitcoin whales to invest in it.

The proposals are:

If any proposal is adopted, it will seek to refund depositors and help maintain shareholders’ value.

I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation https://t.co/FyF1Qaw6ZE

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 19, 2022

The recovery plan comes a few weeks after Dixon mentioned that a traditional solution might not be the way out for Celsius and advised that it should explore something similar to the equity debt issuance like Bitfinex in 2016.

According to Dixon, BnkToTheFuture will call a shareholders’ meeting to discuss the proposals.

BnkToTheFuture Capital SPC holds over 5% of Celsius shares, and therefore we believe that this allows us to call a shareholder meeting as part of our statutory shareholder rights that legally cannot be ignored by the Celsius board.

It appears that BnkToTheFuture intends to pressure Celsius by publicly disclosing the proposals after the Celsius board and advisors failed to act on previous communications between them.

Dixon said:

You have to move really fast because the longer you go on, the more FUD comes out, bad PR comes out, more predatory offers come out, the more the community stops believing in what they originally believed in.

With withdrawals frozen since June 13, there are fears of bankruptcy, with many depositors worried they will lose their assets.

Celsius said it is working on stabilizing the liquidity issues and will share more information with the community soon.

Celsius continued that it is taking steps to “preserve and protect assets” while exploring options. Some of the options include restructuring liabilities, strategic transactions, etc.

It added that:

These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.

The post BnkToTheFuture proposes 3 methods to solve Celsius Network’s liquidity issues appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

233 +