Unless you’ve been hiding under a crypto fuelled rock, you would have heard that Celsius, once a leading crypto platform, has now declared bankruptcy.
On the 12th June 2022, Celsius (a crypto lending platform), informed the community it would be pausing withdrawals from its platform in order to ‘put Celsius in a better position to honor, over time, its withdrawal obligations.’
This meant that anyone who had deposited funds on the platform looking to earn interest from idle crypto funds, could not withdraw any of these funds to another exchange or to fiat.
However, things took a turn for the worse when on July 2022, Celsius sent out a ‘Notice of Chapter 11 Bankruptcy Case’ detailing the corporate entities involved in the bankruptcy and when the initial hearing will take place. The details on how to make a claim will be announced in due course.
Earlier this month (September 2022), Celsius informed the courts that they wished to reopen withdrawals for ‘specific customers’ This request was pertaining to the assets held belonging to certain customers in the custody program.
So, what does this mean?
The Celsius Bankruptcy Letter
The initial letter doesn’t mean too much other than providing some information on the next steps for the case and the timings of the initial hearing. What it does do though is provide some more evidence that the company will not be able to meet its obligations to creditors which adds significant weight to the case of a negligible value claim (explained more here).
So, the question on everyones tongue is:
What should I do next?
Well, let’s answer that shall we!
Celsius Next Steps
In terms of next steps, if you have assets on Celsius and you are concerned about the tax implications of these assets and want to discuss this please do contact our team who will be able to provide advice on the most tax efficient route forward.
Regarding your tax position, at Myna we are hugely experienced in all aspects of crypto tax planning and would be delighted to have a conversation around how we can support you.
Check out our recent blog on ‘taxes during a bear market’ here.
Or better yet, pick up an NFT from our collection to receive confidential advice on Discord relating to your scenario!
Any further comments or questions, shoot us a message!
