Celsius To Start Paying Back Creditors

Celsius Network, a company that deals with digital money (cryptocurrencies), has shared big news in court: they plan to start paying back their customers by the end of this year. This update came during a court meeting on Oct. 2, where they discussed their plan to reorganize (change the structure of) the company.

In New York, the lawyer for Celsius, Christopher Koenig, shared that a new company, simply named “NewCo,” will be created with $450 million ready to be used.

According to documents from Sept. 29, Celsius plans to use a huge amount of digital money, specifically $2.03 billion in Bitcoin and Ethereum, plus shares in the new company, to pay back some of the money it owes to creditors (people and entities it owes money to).

NewCo will be supported by a group of companies called Fahrenheit LLC, and they will manage the business related to "mining" and "staking"

The judge, Martin Glenn, is thinking about whether to say yes to Celsius’s restructuring plan. This plan also has to get approval from security regulators. Even though most people voted in favor of the plan, some creditors are not happy with it and are challenging it.

Celsius says that their plan has the support of over 95%of the voting account holders. If approved, Celsius, which had issues and halted customer withdrawals in June 2022, would be one of the first crypto platforms from that year to come back to life after going through a Chapter 11 bankruptcy case.