Celsius Network, a leading cryptocurrency lending and borrowing platform, has announced the filing of a disclosure statement for its restructuring plan. The plan aims to provide a clear path forward for the company and its stakeholders, including investors, lenders, and borrowers.
The restructuring plan comes after Celsius Network faced regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) over its interest-earning accounts. The SEC had raised concerns that these accounts may be considered securities and therefore subject to regulation.
To address these concerns, Celsius Network has proposed a restructuring plan that would convert its interest-earning accounts into a new type of account called “Celsius Tokens.” These tokens would be issued as a security under Regulation D of the SEC’s rules, which allows for the sale of securities to accredited investors.
Under the proposed plan, Celsius Network would also establish a new subsidiary called Celsius Digital Securities LLC, which would be responsible for issuing and managing the Celsius Tokens. The subsidiary would be registered with the SEC as a broker-dealer and alternative trading system (ATS), which would allow it to offer secondary trading of the tokens.
The filing of the disclosure statement is an important step in the restructuring process, as it provides stakeholders with detailed information about the proposed plan and its potential impact on their investments. The statement includes financial projections, risk factors, and other relevant information that investors can use to make informed decisions about whether to support the plan.
Celsius Network CEO Alex Mashinsky expressed confidence in the proposed restructuring plan, stating that it “will provide a clear path forward for Celsius and our community of users.” Mashinsky also emphasized that the company remains committed to its mission of providing accessible financial services to people around the world.
The filing of the disclosure statement is just one part of the restructuring process, which will also require approval from Celsius Network’s creditors and shareholders. If approved, the plan could help Celsius Network navigate the regulatory landscape more effectively and continue to grow its business in the rapidly evolving world of cryptocurrency.
In conclusion, Celsius Network’s filing of a disclosure statement for its restructuring plan is an important development for the company and its stakeholders. The proposed plan aims to address regulatory concerns and provide a clear path forward for the company, while also maintaining its commitment to providing accessible financial services to people around the world. As the restructuring process continues, investors and other stakeholders will be closely watching to see how it unfolds and what impact it may have on their investments.
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- Source: Plato Data Intelligence: PlatoData