Mathematician and Biologist Verifies Valuation of Celsius Network’s Assets
Joel E. Cohen, acting as the valuation adviser for Celsius Network, has confirmed the accuracy of the fair value of specific assets and liabilities of the debtors. This verification is an important step in resolving the financial situation of Celsius Network.
Celsius Reorganization Plan Overcomes Valuation Challenge
After facing challenges due to the crypto bear market in 2022, Celsius Network filed for Chapter 11 Bankruptcy. However, a recent court filing confirmed the accuracy of the valuation of debtors’ assets and liabilities. The valuation was conducted by Stout Risius Ross and covered cryptocurrency assets, loans, and alternative investments.
In a declaration submitted to the New York bankruptcy court, Joel E. Cohen explained the methodologies used in the valuation analysis and concluded that it accurately represents the fair value of certain assets and liabilities as of May 31, 2023.
The reorganization plan includes distributing approximately $2 billion among creditors and allocating equity in a new entity called “NewCo.”
Celsius Network’s Financial Troubles
Celsius initially reported a debt of $1.2 billion in their bankruptcy filing, but estimations suggest it could be closer to $2.85 billion. The company’s net liabilities were estimated at $6.6 billion, while its total assets under management were $2.85 billion.
The case attracted controversy when it was revealed that CEO Alex Mashinsky withdrew $10 million worth of crypto before withdrawals were halted. There were also allegations of inappropriate trading influence by Mashinsky.
Court documents later revealed that Mashinsky and other executives withdrew $56.12 million between May and June from custody accounts in various cryptocurrencies.
Hot Take: Celsius Network Makes Progress in Debt Resolution
Celsius Network’s reorganization plan has taken a significant step forward with the approval of creditors and the verification of asset valuations. This development brings hope for the resolution of the company’s financial troubles. By distributing $2 billion to creditors and establishing a new entity, Celsius aims to address its debts and move towards stability. However, controversies surrounding CEO Alex Mashinsky’s actions during the bankruptcy filing raise concerns about accountability and transparency. It remains to be seen how Celsius Network will navigate these challenges and regain trust from its community.
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