Leaked Audio Featuring Celsius Execs Reveal Plans To Create IOU Cryptocurrency – Bitcoin News

According to leaked audio obtained by CNBC, crypto lender Celsius wants to create a cryptocurrency IOU to repay customers. The audio was provided by a Celsius client, and the recording explains that the bankrupt crypto-lender wants to create “wrapped tokens” that represent the ratio of what customers owe to what the company keeps on its balance sheet. Celsius says its customers can reduce financial losses if they keep their tokens.

Leaked audio confirmed by former Celsius employees demonstrates the concept of the IOU cryptocurrency

After the addition of a court-appointed investigator Celsius In bankruptcy and the crypto lender has tried to reopen withdrawals for some customers, according to leaked information obtained by CNBC, Audio Celsius wants to create a crypto IOU.

It all started 103 days ago on June 12th at 10:10 pm (ET) when Celsius told the crowd that “all withdrawals, exchanges and transfers between accounts” had stopped. A month later, following several rumors of bankruptcy and restructuring, Celsius filed for Chapter 11 bankruptcy protection.

The scheme used by Bitfinex is not the first crypto company to create a token to pay off its debt after a 2016 breach lost around 120,000 BTC. The exchange initially issued “recovery rights” coins BFX token and in April 2017, the exchange debt was fully paid.

The Celsius audio obtained by CNBC was obtained from a customer who called. Tiffany Fong, And the news outlet was able to confirm that the audio was “authentic” from former Celsius employees. The audio is said to feature the Celsius co-founder. Nuke Goldstein and the company’s chief technology officer William Bodnar.

Celsius wants to emphasize ‘transparency’ through its ‘transaction management system’.

According to the announcement, a certain type of “wrapped token” will serve as IOUs, and could help support the company’s mining business and stored Ethereum. Two days before Celsius stopped withdrawing money, crypto fans Found out A large amount of Lido staked ether (STETH) has reportedly been linked to a crypto lending firm.

Goldstein said the plan will apply to customers who use the “Earn” account. Bodnar explained that the IOU token idea was in the “early stages” and in an audio segment shared exclusively with CNBC that Bodnar had other plans to bolster his compensation proposal.

The “transaction management system,” summarizes CNBC’s Page Tortorelli and Kate Rooney’s report, and the system aims to provide Celsius customers with better “transparency.”

“Transparency is reflected not only in the way we communicate, but in making sure everything that happens in the platform is viewable, auditable, end-to-end,” Bodnar said in the audio.

Celsius has launched a token called the Celsius Network (CEL), which is said to be the “backbone of the Celsius Network”. CEL was intended to create a “value-based lending and credit platform” for all its members.

As of this writing, there are 423,415,980 CEL in circulation today. CEL is down 80.6% from its all-time high for the crypto asset, and has seen a global trade volume of $8,280,796.

The most active exchange in terms of CEL transactions and liquidity is Digfinex. Additionally, a few CEL supporters attempted a so-called short squeeze with CEL in July, an effort that ultimately failed.

Tags in this story

AUDIO , BFX Tokens , BitFinex , Celsius , Celsius Bankruptcy , Celsius Crypto Lender , Celsius IOU Token Idea , Chapter 11 , Chapter 11 Bankruptcy Tokens , Released Audio , Nuke Goldstein , Tiffany Fong , Trading Management System

What do you think of the leaked audio that says Celsius wants to issue crypto asset IOU tokens to pay “Earn” customers? Let us know what you think about this in the comments section below.

Jamie Redman

Jamie Redman is the news lead at Bitcoin.com and a financial tech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons, Editorial Photo Credit: rafapress / Shutterstock.com

DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *