- Celsius is exploring all options to pay back its creditors
- PayPal’s Hyperwallet is expected to streamline the complicated repayment project
Celsius Network, currently navigating bankruptcy, has announced plans to utilize PayPal’s Hyperwallet to distribute funds to its creditors. This strategy, detailed in a filing before the U.S. Bankruptcy Court for the Southern District of New York, was chosen due to potential complications that traditional wire transfers might pose for some creditors.
By leveraging Hyperwallet, Celsius aims to streamline the repayment process and provide creditors with more flexible payment options.
Celsius Network, once a prominent player in the cryptocurrency lending space, filed for bankruptcy in July 2022 following significant market volatility and accusations of mismanagement. The company’s collapse sent shockwaves through the crypto industry, leading to a broader examination of the risks associated with decentralized finance (DeFi) platforms.
Hyperwallet, a PayPal service, specializes in global payout solutions, making it a suitable choice for Celsius’s complex creditor base.
The platform is designed to facilitate payments across various currencies and payment methods, which is particularly useful for ensuring that creditors, regardless of their location or banking infrastructure, receive their funds promptly.
Celsius Network plans to use Hyperwallet to address the challenges it faces in its bankruptcy proceedings. The company has been under intense scrutiny from both regulators and creditors, with multiple legal battles still ongoing.
Other ideas and options
One of the primary legal challenges involves allegations that Celsius misled investors about the safety of their funds, leading to significant losses.
In addition to distributing funds through Hyperwallet, Celsius is exploring other strategies to repay its creditors. This includes selling off certain assets and potentially restructuring the company to emerge from bankruptcy as a more stable and transparent entity.
However, the road ahead is fraught with legal and financial hurdles, and the ultimate outcome remains uncertain.
That is the reason why Celsius filed a lawsuit worth $2.5 billion against Tether. At the time, the firm claimed that the stablecoin issuer engaged in unfair and fraudulent Bitcoin transactions before the aforementioned collapse.
For its part though, Tether’s Paolo Ardoino claimed that these allegations were “baseless.”
