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Celsius May Offer Creditors a Loss Now, or a Long Crypto Bet (2)

July 18, 2022, 8:58 PM

Cryptocurrency lender Celsius Network LLC may use its bankruptcy case to give creditors a choice between taking less than they are owed in cash, or making a bet on the long-term value of the cryptocurrencies at the heart of the company’s failure.

The company opened its first Chapter 11 court hearing Monday with a promise not to force its customers to accept any repayment they may be owed in US dollars or any other so-called fiat currency.

“This is not a liquidation,” Patrick Nash, a bankruptcy lawyer for Celsius, told the judge overseeing the bankruptcy case in Manhattan. “All ...