Bankrupt networking company Celsius Network announces app shutdown

When Celsius first appeared on the scene in 2017, its crypto loan platform was hailed as potentially game-changing. Six years in, it seems that Celsius’ time in the crypto world has come to an end.

In its most recent disclosure statement filed as part of its ongoing bankruptcy proceedings, the firm announced that the Celsius app will be discontinued in 90 days. In light of the impending transition to “NewCo,” a separate legal corporation to be managed by Fahrenheit Group and owned by Celsius’ creditors, this development is timely.

According to the statement, Celsius settled on 90 days because it found that amount of time to be sufficient “for custody and withhold account holders pursuant to the Custody and Withhold Settlements.” Users’ access to the app and their Celsius account will be terminated at the end of the withdrawal period of 90 days.

However, Creditors should take heart since the corporation has laid out a strategy for repaying its debts. These debtors are not limited to customers who have an existing account with Celsius. The business said it would also reimburse customers who “earned rewards on their digital assets in accounts set up with other exchanges or from companies which were part of Celsius’ partner programmes.”

The online payment service Paypal has been suggested as a possible distribution agent to manage payments to individual debtors in the United States.

Distributions to foreign creditors, corporate creditors, and Custody and Withhold creditors will all be handled by the agent the firm hires. But if it doesn’t, it’s still got 90 days after the effective date to pay its creditors using the Celsius app.

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