Celsius May Issue Wrapped Tokens to Pay Off Debt

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Nyuk Goldstein, CTO of Celsius, has said that the restructuring plan for crypto lending platform Celsius Network includes the issuance of wrapped tokens.

A client of the platform has published an audio recording received from an anonymous source with a voice allegedly belonging in which he announced a plan according to which Celsius will issue a family of wrapped tokens with blocked client funds.

For instance, users waiting for a Bitcoin refund will receive CxBTC tokens, which will represent the ratio of the platform’s liabilities to the cryptocurrency on its balance sheet.

Clients can buy back the wrapped tokens or wait for larger payouts as additional revenue emerges from upcoming Ethereum mining, staking and asset sales that could become liquid.

It should be noted that the proposal must still be approved by the court.

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