A bankruptcy crypto token might be released by Celsius to pay creditors.Table of Contents
A bankruptcy crypto token might be released by Celsius to pay creditors.
By CoinUnited.io Research Team
2 min read
During a video-court session, business attorney Ross M. Kwasteniet argued that reorganizing Celsius into a publicly-traded firm that is fully licensed will bring in more money for creditors than selling difficult-to-liquidate assets at today's low prices.
According to US Bankruptcy Judge Martin Glenn in New York, Celsius has been in negotiations with several creditor groups about how to set up the new firm and issue a new token to creditors as part of a payout plan.
Celsius is likely the first crypto firm to try issuing a new token — which must be allowed by a federal judge — to help buy its way out of bankruptcy, although another ailing crypto platform has previously generated digital assets to offset consumer losses.
A Bitcoin mining-pool service provider located in Beijing announced in September that it will provide tokens to its customers with a value equivalent to the whole of their frozen crypto assets.
Creditors, including Celsius customers who have cryptocurrency on the platform, would get the first say on any restructuring proposal. Glenn would think over the poll results before determining whether or not to accept the proposition.
Celsius filed into bankruptcy last year and has since attempted to sell its assets and continue functioning as a going concern by inviting offers. Kwasteniet has stated that the bids for certain assets "have not been attractive."
Later this week, Kwasteniet added, the corporation will submit court documents outlining its objectives. He also said that any new firm will be structured around assets like a loan and investment portfolio and cryptocurrency mining hardware numbering in the tens of thousands.
A firm finance advisor testified that cryptocurrency mining has become more profitable in recent months.
Celsius Network LLC, Case No. 22-10964, United States Bankruptcy Court, Southern District of New York (Manhattan).
Kwasteniet reported to US Bankruptcy Judge Martin Glenn in New York that Celsius has been in talks with various creditor organizations about how to establish the new firm and issue a new token to creditors as part of a compensation plan.
Celsius is likely the first crypto firm to try issuing a new token — which must be allowed by a federal judge — to help buy its way out of bankruptcy, although another ailing crypto platform has previously generated digital assets to offset consumer losses.
A Bitcoin mining-pool service provider located in Beijing announced in September that it will provide tokens to its customers with a value equivalent to the whole of their frozen crypto assets.
Creditors, including Celsius customers who have cryptocurrency on the platform, would get the first say on any restructuring proposal. Glenn would think over the poll results before determining whether or not to accept the proposition.
Celsius filed into bankruptcy last year and has since attempted to sell its assets and continue functioning as a going concern by inviting offers. Kwasteniet has stated that the bids for certain assets "have not been attractive."
Later this week, Kwasteniet added, the corporation will submit court documents outlining its objectives. He also said that any new firm will be structured around assets like a loan and investment portfolio and cryptocurrency mining hardware numbering in the tens of thousands.
A firm finance advisor testified that cryptocurrency mining has become more profitable in recent months.
Celsius Network LLC, Case No. 22-10964, United States Bankruptcy Court, Southern District of New York (Manhattan).
(The fifth paragraph has been updated with fresh examples of digital tokens.)
Latest Crypto Trading Articles & Market Insights
See All Articles
Stay ahead with the newest tutorials, price predictions, and trading strategies across top crypto and CFD markets.
PayPal USD (PYUSD) Price Prediction: Can PYUSD Reach $30 in 2026?
17 JUN 2025
Nuburu, Inc. (BURU) Price Prediction: Can BURU Reach $1.8 in 2026?
11 AUG 2025Biggest Primech Holdings Ltd. (PMEC) Trading Opportunities in 2025: You Shouldn’t Miss.
24 APR 2026The Best Trading Platforms for Primech Holdings Ltd. (PMEC)
24 APR 2026
The Fundamentals of Pineapple Financial Inc. (PAPL): What Every Trader Needs to Know
24 APR 2026Maximizing Profits with 2000x Leverage on Primech Holdings Ltd. (PMEC): A Comprehensive Guide.
24 APR 2026Trending Crypto Articles: Top Coins Making Moves Right Now
See All Articles
Explore expert insights and trading guides on today’s most active and talked-about cryptocurrencies.
PayPal USD (PYUSD) Price Prediction: Can PYUSD Reach $30 in 2026?
17 JUN 2025Nuburu, Inc. (BURU) Price Prediction: Can BURU Reach $1.8 in 2026?
11 AUG 2025Biggest Primech Holdings Ltd. (PMEC) Trading Opportunities in 2025: You Shouldn’t Miss.
24 APR 2026The Best Trading Platforms for Primech Holdings Ltd. (PMEC)
24 APR 2026The Fundamentals of Pineapple Financial Inc. (PAPL): What Every Trader Needs to Know
24 APR 2026Maximizing Profits with 2000x Leverage on Primech Holdings Ltd. (PMEC): A Comprehensive Guide.
24 APR 2026