Celsius management is trying to avoid filing for bankruptcy, contrary to advice from counsel and lawyers. The company asked users to show support by enabling “HODL Mode” that temporarily disables outgoing transactions in their accounts. Meanwhile, Celsius again withdrew its positions in the leading altcoin Ethereum (ETH) in Bancor’s liquidity pool to pay off loans and continue weekly rewards. Here are the details…
Celsius liquidates altcoin positions on Bancor
PeckShieldAlert reported on June 28 that a suspicious Celsius address has withdrawn 12,880 Ethereum. It was noted that ETH changed hands at the time of $1,190. It also reported that it received around 7,183 ETH from a Bancor liquidity pool. Celsius began withdrawing ETH positions on Bancor after disabling Temporary Loss Protection. Last Thursday, the company pulled about 2000 ETH from its liquidity pool and received about 1150 ETH.
In addition, Celsius paid off some of its loans until June 27. Apart from that, the company has restarted its “weekly rewards” activities, although it paused its withdrawals, clearing and cross-account transfers earlier this month. In the meantime, as we reported as Kriptokoin.com, advisors are suggesting that the company file for bankruptcy. CEO Alex Mashinsky and other executives plan to revive the platform with limited withdrawals. Celsius believes that most of its individual clients will try to avoid the company’s bankruptcy as it is cumbersome and time consuming.
Celsius asked its users to enable “HODL Mode” which will make lawyers and advertisers believe in the support from the community and the level of trust placed in users. Activation of the function will have no effect on users who are currently blocked from withdrawing or transferring funds. However, users may have to wait 24 hours to use their account after the company resumes withdrawals.
Celsius denies CEO Alex Mashinsky’s alleged departure from the US
While it’s still unclear what exactly will happen to the funds belonging to Celsius users, the firm reportedly hired advisors from a management consulting firm before it likely faced bankruptcy. Celsius also hired lawyers to help restructure the company amid financial troubles.
Celsius also claimed that recent reports of Alex Mashinsky’s escape from the United States were false. Cryptocurrency investor Mike Alfred tweeted on June 27 that Mashinsky was stopped by airport officials as he left for Israel. However, an update by Celsius includes the following statements:
All Celsius employees, including our CEO, are focused and working hard to stabilize liquidity and operations. Therefore, all reports that Celsius CEO is trying to leave the US are false.
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