Celsius' bankruptcy Hail Mary Plan : Turn debt into cryptocurrency.
By The Exchange Team
Customers' cash are in limbo since bankrupt crypto lender Celsius banned withdrawals in June.
Now, A Leaked audio shows a compensation plan. The startup plans to issue customers a "IOU" cryptocurrency.
Tiffany Fong, who has cash locked in Celsius, shared the recording. Fong received the audio from an unidentified employee.
CTO Guillermo Bodnar states in the recording that the plan is in "early stages." What's stated here could have changed in the weeks since the call.
Nuke Goldstein, co-founder of Celsius, explains a reimbursement scheme for clients that put money in Celsius' "Earn" account, which guaranteed 17% rates.
Celsius, according to Goldstein, will issue "wrapped tokens" that will serve as an IOU for clients.
Celsius has plans beyond repayment. Bodnar said the company is also constructing a transaction management system to track its blockchain assets.