Celsius is in total disarray as it continues to navigate bankruptcy. The crypto company is one of the hardest hit by the May market crash. And to this day, it is struggling in its efforts to get out of debt. That reality is rearing its head again. New reports suggest the company is still looking for ways to offload debts while appeasing angry customers. To top things off, it’s dealing with an internal transition.

CEO Alex Mashinsky is announcing his resignation today. Mashinsky founded Celsius five years ago and has been its chief executive ever since. His resignation letter says the change is under effect immediately, and the role had been an “increasing distraction.” It also implies the company did not prepare for this transition, as it does not name any replacement or interim plan. Rather, Mashinsky simply says he will retain his role as director of the company.

In this director role, Mashinsky says he will “help the community unite behind a plan that will provide the best outcome for all creditors.” Of course, the company has found itself at odds with both creditors and the Celsius community itself after it froze over half a million user accounts in June. Now, the crypto market is a shell of what it was and these users still do not have access to their funds.

The company seemingly had its debt plan all worked out in August. As part of its reorganization plan required by Chapter 11 bankruptcy proceedings, Celsius promised to mine its way out of debt with a crypto mining subsidiary. However, it apparently isn’t enough, as new reports suggest.

Celsius Looking for New Ways to Reduce Debt

Critics of Celsius’ approved debt reduction plan were not convinced, to say the least. Mathematically, it really doesn’t seem like Celsius can earn enough money through crypto mining to pay back creditors. Even if the crypto mining operation mined at full capacity, it would need several years before it could reasonably expect to pay its debts off. And behind closed doors, the company is seemingly acknowledging this.

A leaked audio clip from an internal meeting has surfaced online, thanks to a Celsius user named Tiffany Fong. Fong is one of the many users with their funds still frozen by the company. The audio suggests Celsius is planning another scheme to reduce its debt while satiating these angry customers.

Celsius appears to be preparing an “IOU” token to issue to its 500,000 customers with frozen assets. The wrapped tokens will represent the ratio between what Celsius owes to its customers and the assets that the company has on hand.

The company is crossing its fingers and hoping this collateral will calm angry customers and incentivize them to hold onto the tokens in anticipation of gains. Celsius co-founder Nuke Goldstein says that theoretically, the value of the tokens should go up through its mining operations. Although, it also stands to benefit if users choose to redeem their tokens immediately. This is because the tokens would be worth less than what the assets the company has frozen are worth.

It’s a win-win for Celsius. But, it banks on first being approved by unsecured creditors and also on the crypto mining business doing well. It also means customers need to wait much longer than they thought if they hope to see their assets again.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.