Leaked Audio Featuring Celsius Execs Uncovers Plans to Create an IOU Cryptocurrency – Bitcoin News

CNBC obtained leaked audio that shows Celsius, a crypto lender wanting to make an IOU cryptocurrency to help clients pay back. The audio was provided by a Celsius customer and the recording explains the bankrupt crypto lender wants to create a form of “wrapped tokens” that represents a ratio of what customers are owed and what the firm has left on its balance sheet. The pitch claims that if Celsius customers hold on to their tokens there’s a possibility financial loss could be mitigated.

A leaked audio reveals an IOU cryptocurrency concept, as verified by former Celsius employees

The court appointed examiner was also added. CelsiusA bankruptcy case was filed and the crypto lender attempted to reopen withdrawals to specific customers. CNBC obtained leaked audio that details Celsius’s alleged desire to make an IOU cryptocurrency.

It all started 103 days ago on June 12, at 10:10 p.m. (ET), when Celsius told the public that it paused “all withdrawals, swaps, and transfers between accounts.” A month later, following several insolvency and restructuring rumors, Celsius filed for Chapter 11 bankruptcy protection.

Celsius isn’t the only crypto company that has created a token for repaying debt. The plan was developed by Bitfinex, which was impacted by the loss of close to 120,000 BTC during the 2016 breach. The exchange initially issued “Recovery Rights” coins called BFX tokens and by April 2017, the exchange said the debt was paid in full.

CNBC obtained Celsius audio from customer named Tiffany Fong, and the news outlet was able to verify that the audio was “authentic” from former Celsius employees. It allegedly includes a Celsius cofounder. Nuke Goldstein and the company’s chief technology officer Guillermo Bodnar.

Celsius Wants to Highlight ‘Transparency’ via a ‘Transaction Management System’

According to the audio, a specific type of “wrapped tokens” will serve as IOUs, and the company’s mining business and staked ethereum could help provide backing. Crypto proponents were able to withdraw funds for two days after Celsius suspended withdrawals. discovered a large amount of Lido’s staked ether (STETH) allegedly connected to the crypto lending firm.

Goldstein says the plan would be applied to customers that leveraged the “Earn” account. Bodnar explained in the audio that the IOU token idea was in its “early stages” and a portion of audio shared exclusively with CNBC says Bodnar details another plan to bolster the compensation idea.

He summarized a “transaction management system,” CNBC’s Paige Tortorelli and Kate Rooney report, and the system will aim to provide Celsius customers with better “transparency.”

“Transparency reflected not just in how we communicate, but making sure that everything that is done within our platform is traceable, is auditable, end to end — we don’t have anything to hide,” Bodnar said in the audio.

Celsius already deployed a token called celsius network (CEL) that was supposed to be “the backbone of the Celsius Network.” CEL was meant to create a “value-driven lending and borrowing platform” for all of its members.

At the time of writing, there’s a circulating supply of 423,415,980 CEL today. CEL is down 80.6% from the crypto asset’s all time high, and it’s seen $8,280,796 in global trade volume worldwide.

Digifinex, which is active in CEL trading and liquidity, is today’s most active exchange. A small number of CEL supporters attempted a short squeeze in July with CEL, but it was unsuccessful.

In this story, tags
AUDIO and BFX tokens. BitFinex. Celsius. Celsius. Chapter 11. Chapter 11 Bankruptcy. Celsius IOU token. Crypto IOU. Earn account. Guillermo Bodnar. IOU. IOU crypto. IOU token. IOU Tokens. Leaked audio. Tiffany Fong. Transaction management system.

What do you think about the leaked audio that says Celsius wants to issue a crypto asset IOU token to repay “Earn” customers? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 6,000 articles on disruptive protocols.

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