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New 'Celsius token' may be used to repay creditors: report

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Bankrupt crypto lending firm Celsius may issue its own token to repay creditors, according to a January 24 report from Bloomberg.

The report cites a video court hearing as the source of the information.According to the report, Celsius attorney Ross M. Kwasteniet told the court that the firm is negotiating with its creditors on how to relaunch the platform and adequately pay them back.

The new, relaunched version would be “a publicly-traded company that is properly licensed,” which could allegedly provide more money for creditors than simply liquidating the company.

If approved by creditors and the court, the reorganized company would “issue a new token to creditors as part of a payout plan.”The report stated that details of the plan will be filed with the court later this week.Related: Opinion: Digital Currency Group's Genesis implosion: What comes next?Twitter user CelsiusFacts, who often tweets updates about the case, also claimed to have found details of the reorganization plan.

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