Renowned in the crypto sphere for his vigilance regarding Celsius’ bankruptcy proceedings, Simon Dixon took to the X platform to deliver a stark message to Celsius Creditors regarding the resolution of the insolvency issue.
Dixon’s statement delves into the ongoing Celsius Chapter 11 case and its intertwining with FTX, another beleaguered crypto platform grappling with its bankruptcy case. He underscored the urgency for Celsius to expedite its exit from Chapter 11, cautioning creditors to tread carefully in their dealings with FTX.
Dixon’s apprehension stems from previous financial transactions between Celsius and Alameda Research, a crypto trading entity affiliated with FTX. He brought to light that Celsius had extended loans to Alameda Research prior to its bankruptcy, with Alameda Research reimbursing the loans from funds belonging to FTX customers. Notably, Dixon disclosed that the involved loan amounts in early 2022 exceeded $3 billion.
In his recent tweet, Dixon alluded to potential risks entailed in these financial interactions, urging Celsius Creditors to exercise caution and refrain from seeking further entanglement with FTX. Dixon reiterated, reiterating, “Celsius Chapter 11 Creditors interested in the inter-relationship with the FTX Chapter 11 Case: Time To Exit Chapter 11.”
Dixon made it clear that his suggestions did not constitute legal or financial advice. To provide context, exiting Chapter 11 entails the conclusion of bankruptcy proceedings in accordance with the United States Bankruptcy Code, affording the involved party a more sustainable financial footing and a fresh start.
Meanwhile, it’s worth noting that FTX has recently unveiled a proposed settlement to address customer property disputes, potentially enabling customers to recover up to 90% of their lost assets by mid-2024. Coin Edition reported that the claim amounts to approximately $8.9 billion for FTX.com customers and $166 million for FTX.US customers.