Is Celsius Going To 100% LIQUIDATE Crypto? Celsius Celsius is going before the court I’m going to share with you some of the biggest updates and things that will be talked about then.
That is very important about Celsius getting an extension and also about some objections to that extension that came in.
So what I want to dive into today they are trying to sell Bitmain coupons. Which will generate a couple of million dollars for the estate.
Also, the Texas State Securities Board is objecting to their exclusivity extension. And then we have a huge story that came in today talking about all of the attorneys for all of these states basically saying if you don’t get your act together if you don’t present a plan we want this entire thing to be liquidated.
Is Celsius Going To 100% LIQUIDATE Crypto? Celsius Network
So starting out right here we have Celsius wanting to sell their bit main coupons. So what this means is that Bitmain provided Celsius with certain coupons.
Now bit main they are the people they are the company that builds the Bitcoin mining machines.
So they gave these coupons to Celsius free of charge as in means of incentivizing the debtors to purchase additional mining rigs.
But these coupons have an expiration date starting in mid-march. Celsius wants to do is monetize the coupons and the credits.
This is kind of like a company giving a coupon saying hey if you come back and buy more products we’re going to give you 10 or 20 off your future order.
And Celsius is like well we are not going to use them we are not moving forward most likely with our Bitcoin mining infrastructure.
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And Celsius want to monetize them so the bit main coupons should bring in around 7.4 million dollars in liquidity.
So here we have the Texas state Securities board also objecting to the exclusivity motion.
So why is Texas objecting? well, right here the debtor’s historic wrongdoing set forth in the final report of the examiner the mounting admin costs and the debtor’s lack of liquidity.
This also reports the denial of the exclusivity motion. Right now we have Texas we have a bunch of States we have the U.S. trustee we have the UCC all objecting to this.
Next, we have a pretty darn big story we have the attorneys for the states of Alabama Arkansas Arizona DC Hawaii Idaho Maine and North Carolina North Dakota Oklahoma and California.
So what they are saying and I will get to what Simon Dixon has to say about this in a second.
If we don’t get our crap together they want to liquidate us or they think that is the best decision they start out by saying that it’s been since early July and nothing’s really been done.
They are bleeding funds they talk about Ad Hoc creditors saying that they are dissatisfied with the pace and direction of the case.
Talking about the appointment of a trustee which Daniel frischberg and others have put forth and here they talk about a massive conflict of interest.
They say what the debtors do not mention is that the special committee members Mr bars and Mr Carr were appointed just days prior to the bankruptcy filing presumably at Alex’s discretion. As he was still in control of the company at that point.
Now, this is really important as Celsius reorganizes its board of directors amid liquidity issues this is from July 6th.
So what is that like a week or so a couple of days before they declare bankruptcy this is after the pause.
There’s been a lot of talk about whether is Alex still in control and you will get people saying no absolutely not he’s not in control he’s been out of the process for a long time.
He appointed the two people in charge of literally the restructuring committee to think that he does not have a voice is ridiculous.
And here they say that those directors’ connections with Mr machinski can be determined with minimal Discovery.
Meaning it’s freaking obvious that there is still a connection between Alex and the people in charge of this reorganization.
And here they say an extension should depend on whether at this week’s hearing Celsius can put forth a plan that is agreed to by the sponsoring parties.
Likely to be confirmable regulatory compliant and feasible to move forward within the light of the debtor’s limited solvency period.
Meaning they are running out of money if those basic criteria cannot be met. We do not believe that exclusivity should be extended.
And that gets this guy the party should be looking towards moving this case into a posture of orderly liquidation.
This is what Simon Dixon says as well he says if we don’t see a Celsius plan on the 15th of February 2023. We are probably all getting liquidated US Dollars.
At this point, Regulators are running low on patients’ time to show the plan Celsius no more messing around.
Now, this is a really big deal for taxes a lot of people will honestly have to declare bankruptcy.
If they liquidate everyone’s crypto into US dollars there are so many problems with this and this is really the worst or one of the worst-case scenarios at this point.
I mean the worst-case scenario would be Celsius takes our coins and puts them into another failing company.
They go through another chapter 11 and then all of a sudden we have nothing. That’s the worst-case scenario.
The second, the worst-case scenario is liquidating back into US dollars just because it is very gruesome and it will probably tank the crypto Market with how much they have to sell.
And again people who bought Bitcoin say 5 or 7 years ago are going to have a massive tax hit Simon says that multiple State entities.
As the estate has been bleeding funds and Celsius has not proven that they are ready to present a plan basically if a plan is not presented on the 15th.
They would like the extension denied and the plan should be for again an orderly liquidation.