OPNX explains why Celsius was prioritized over FTX, others for bankruptcy tokenization

Celsius was selected archetypal for OPNX’s bankruptcy tokenization owed to the company’s “completely unredacted database,” according to Heimdall CEO Vishal Shah.

Heimdall, a supplier of concern tokenization solutions, and OPNX partnered to rotation retired their bankruptcy tokenization product, enabling users with funds frozen connected defunct platforms to entree liquidity.

The merchandise provides an alternate to the lengthy bankruptcy medication process, which tin instrumentality galore years to resolve.

For example, 8 years aft Mt. Gox went under, the creditors person yet to person outgo – a concern made each the much frustrating owed to continual changes successful the repayment schedule.

On May 24, OPNX co-founder Mark Lamb and Shah announced Celsius users could tokenize their bankruptcy claims soon aft May 29.

OPNX goes with Celsius first

In an update to the launch, Shah explained that Celsius’s claims were chosen archetypal owed to the accessibility of the company’s database of information.

The Heimdall CEO said their nonsubjective is to present a tech furniture and digitize the antiquated bankruptcy process. But doing that requires data.

Out of the galore crypto bankruptcies that occurred successful 2022, it happens that Celsius information is readily available, making the digitization process “very easy” to woody with, Shah said, adding:

“Celsius has a wholly unredacted database, truthful it’s precise casual to excavation that information, parse it successful the mode you request and marque consciousness of it to enactment towards a seamless validation.”

In addition, Shah said it’s not a tiny property either, with astir 600,000 creditors, 85% of which are categorized arsenic “convenience class,” making Celsius a “hand successful glove” prime to spell with first.

“It resonates with the ethos that we’re trying to physique thing that assists those that were unfairly exposed.”

Under Chapter 11 bankruptcy rules, a convenience class refers to a classification of unsecured creditors owed little than a threshold determined by the court.

By designating antithetic classes of creditors, the administrative load connected the tribunal is eased compared to if each claims were treated the same, careless of whether they are big, small, secured, oregon unsecured.

The station OPNX explains wherefore Celsius was prioritized implicit FTX, others for bankruptcy tokenization appeared archetypal connected CryptoSlate.