Recently beleaguered crypto lending firm Celsius Network announced filing of a motion. The motion noted to extend its reorganization plan’s exclusivity period. This would allow the crypto firm to have more spare time to figure out an action plan to work upon.
Source – Twitter
Since Celsius filed for bankruptcy proceedings, it has faced a lot of lawsuits filing against it.
Reimbursing Employees Got Tough for Celsius
One such instance happened recently when another motion filing came as a heavy blow for shareholders as it asked for preference to customers for its assets and repayments. While the judge hearing the case has denied the company, for the time being, to pay retention bonus to certain employees. The total amount of these payments would account for approx 3 million USD.
Celsius lawyers made claims arguing that the plan was crucial as it would keep their employees with the company and refrain them from leaving. The said fund of 3 million USD was expected to be reimbursed among 62 employees within the workforce of 274 people as a cash bonus.
In July this year, Celsius Network along with its several subsidiaries went on to file for bankruptcy under Chapter 11 bankruptcy. It filed for proceedings within the United States Bankruptcy Code in the Southern District of New York’s US Bankruptcy Court.
In Chapter 11 bankruptcy, the companies are allowed to restructure their financial accountability through different tactics—including reorganization, sales or alike activities.
FTX Bankruptcy Filing: Another Blow for Crypto Space
Talking about the bankruptcies, the crypto market has witnessed its biggest bankruptcy filing recently. Bahamian crypto exchange, Sam Bankman-Freid’s FTX went on to file for Chapter 11 bankruptcy. In addition, SBF also stepped down from FTX’ CEO and John J. Ray III is said to continue as the new leader.
Falling giants like FTX makes it obvious to spread ripple effects all over the crypto space. Approx 130 companies are said to be included in the proceedings such as trading firm Alameda Research and US subsidiary of crypto exchange FTX US.
According to a CNBC report, FTX has over 100,000 creditors while the company holds both assets and liabilities between the range of 10 billion USD to 50 billion USD.
Newly appointed chief of FTX said the Chapter 11 filing would act as an immediate relief and appropriate to avail the opportunity for FTX Group to assess the current situation. It will also bring a process in order to maximize the recoveries of assets for stakeholders.
FTX has been one of the top crypto exchanges with more than one million users and over 32 billion USD worth valuation.
Source: https://www.thecoinrepublic.com/2022/11/12/crypto-lender-celsius-files-to-extend-submission-time-ftx-files-for-bankruptcy/