Celsius Receives Approval from Courts to Repay $2 Billion to Its Creditors
Creditors of Celsius will soon get Bitcoin and new firm shares as part of an accepted bankruptcy plan.
Celsius Network’s bankruptcy plan is accepted, laying the path for consumers to recover their funds and obtain shares in the new business, NewCo.
About $2 billion in Bitcoin and shares in NewCo will be handed to creditors after Judge Martin Glenn approved the scheme. The anticipated reimbursement start date is December 31st.
Creditors can include Celsius Earn program participants who have locked their CEL tokens in exchange for benefits. The court stressed that the SEC could not challenge the approval since it did not classify the software as a security.
While waiting for approval from the Securities and Exchange Commission (SEC), the newly formed business NewCo plans to expand Celsius’s mining activities and manage other projects.
NewCo is getting ready for action under the direction of the Fahrenheit consortium, which is focused on cryptocurrencies and includes firms like Proof Group.
As of July 2022, Celsius was insolvent. Alex Mashinsky, the CEO, was arrested on fraud allegations but is now free on bail until trial in 2024. Roni Cohen-Pavon, a former executive there, has pled guilty to fraud and is awaiting punishment.