Celsius Announces App Shutdown and Cryptocurrency Distribution Plan Amid Restructuring Efforts
Crypto News – Celsius, the trailblazing cryptocurrency lending platform facing financial difficulties, recently unveiled an updated disclosure statement that lays out its strategy to phase out its application within the span of 90 days. This strategic move is part and parcel of the company’s comprehensive endeavors to streamline its operational processes, refine distribution mechanisms, and elevate the overall user experience.
Within the disclosure, Celsius elaborated on its blueprint to offer substantial reimbursements to its creditors in the form of cryptocurrencies. Particularly noteworthy, the company has set forth its intention to allocate readily tradable digital currencies such as Bitcoin (BTC) and Ethereum (ETH) to eligible creditors. The estimated value of this slated distribution stands at approximately $2.03 billion, with adjustments possible due to potential fluctuations in the values of BTC and ETH.
Simultaneously, the verdict to cease operations of the Celsius App after a 90-day period is underpinned by several factors, foremost among them being the financial burden associated with prolonging the platform’s accessibility for an extended interval, especially to process withdrawal requests.
In a strategic maneuver aimed at efficiency, Celsius has chosen to collaborate with third-party distribution agents to oversee this complex process. Notably, PayPal has emerged as a prospective candidate to serve as an agent for specific distributions directed at individual creditors within the United States. Concurrently, Celsius is actively in pursuit of additional distribution agents for other regions. Should suitable agents not be secured within this timeframe, Celsius has opted to extend its platform’s operational span for an additional ninety days following the effective date. This extension would facilitate the distribution process to specific creditors.
The decision to confine the entire process within a 90-day timeframe is grounded in Celsius’ prior experience in enabling cryptocurrency withdrawals for Custody and Withhold Account Holders. As the Celsius App gradually winds down, users are strongly advised to take proactive measures by downloading their transaction histories to maintain personal records prior to the impending deactivation date. Post the cessation of the app’s existence, users will regrettably lose access to their Celsius accounts and will be unable to log into the platform.
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