The beleaguered Celsius Network has officially confirmed that they have filed for Chapter 11 bankruptcy. This will help them to succeed in the crypto market and restore the fading trust in its community.
How Will This Happen?
Chapter 11 of the bankruptcy clause gives special rights for revival. Celsius is doing this to avert another Mt.Gox from exploding. In the past, companies like American Airlines, Delta, General Motors, Hertz and Marvel have already done this. Following this, they have emerged stronger and now these companies are successful. Celsius perhaps wants to walk on the same lines.
How Will This Be Executed?
The Celsius Network has appointed a specific team for this purpose. They will be setting up the liquidation and asset distribution process which will be restoring the beleaguered exchange. The first-day motion of the bill will be paying off the employees. reserves will manage the maturity dates and interest payments. The $167 million cash in hand that the exchange has with it will be executing the operations. The sole purpose at the moment is to restore value and not end up like an Mt.Gox moment for the exchange.
That’s how the trust will be restored in the Celsius ecosystem and even in the crypto ecosystem.