Celsius Gets Courts Approval to Pay Back $2 Billion to Creditors
Celsius' bankruptcy plan approved; creditors to get Bitcoin and new company shares soon.
Celsius Network's bankruptcy plan is approved, setting the stage for customers to recover funds and get shares in the new company, NewCo.
Judge Martin Glenn confirmed the plan, which will see about $2 billion in Bitcoin and shares in NewCo distributed to creditors. Reimbursements are hoped to start by year-end.
Celsius customers in the Earn program, who locked their CEL tokens for rewards, are also among the creditors. The judge clarified that this approval doesn't label the program as a security, which the SEC might contest.
The new company NewCo aims to grow Celsius's mining operations and handle other ventures, they are currently waiting for the green light from regulators (The SEC).
Managed by the crypto-focused Fahrenheit consortium, with groups like Proof Group, NewCo is gearing up for action.
Celsius went bankrupt in July 2022. Its CEO, Alex Mashinsky, who got arrested on fraud charges, awaits a 2024 trial but is out on bail. Its former executive Roni Cohen-Pavon has admitted to fraud and awaits sentencing.
