Celsius bankruptcy plan approved; $2 billion worth of Bitcoin and Ether will be distributed to creditors

Celsius’s bankruptcy plan to distribute around $2 billion worth of bitcoin and Ether to creditors was approved by a bankruptcy court on November 9.

Creditors will also get shares in a reorganized company known as NewCo under the approved plan. The company plans to begin refunds at the end of the year.

Celsius clients will also receive a partial refund of crypto assets deposited on the platform. When it filed for bankruptcy, Celsius had about 600,000 customers with about $4.4 billion in interest-bearing accounts.

bankruptcy restructuring plan also has an agreement that values ​​Celsius’ CEL token at 25 cents. Earlier this year, the bankrupt crypto lender was accused of inflating the value of CEL to benefit insiders.

Court approval today, an important milestone for everyone involved in Celsius’ bankruptcy proceedings.

Read more https://t.co/H8dOOMMlxQ pic.twitter.com/tupLd3iAUF

– Arrington Capital (@Arrington_Cap) November 9, 2023

Celsius reorganizes as NewCo

NewCo will be under the management of Fahrenheit LLC, a consortium of crypto-native individuals and companies such as Arrington Capital. The consortium will mine new bitcoin and monetize Celsius’s illiquid assets.

“Today marks the culmination of a journey that has been too long and too costly for Celsius’ creditors,” Arrington Capital said. crypto-lender-celsius-network-cleared-exit-bankruptcy-2023-11-09/” target=”_blank” rel=”noopener”>Reuters. “We are eager to delve deeper into our future plan to make things right for our creditors.”

The consortium will also buy a $50 million minority stake in the reorganized company, which will be listed on Nasdaq. The listing will allow Celsius clients to sell shares obtained as part of the bankruptcy recovery process.

The reorganized NewCo will also file charges against Celsius founder Alex Mashinsky. Mashinsky faces criminal charges in the United States and a civil lawsuit in New York.

Related news

New crypto mining platform: bitcoin Minetrix

<img class="inContentProviderSingle–img mb-3" alt="bitcoin Minetrix” width=”125″ height=”60″ src=”https://technicalterrence.com/wp-content/uploads/2023/11/Celsius-bankruptcy-plan-approved-2-billion-worth-of-Bitcoin-and”https://technicalterrence.com/crypto/bitcoin/”>bitcoin-minetrix.svg”/>bitcoin-minetrix.svg” alt=”bitcoin Minetrix” width=”125″ height=”60″/>

• Audited by Coinsult
• Secure and decentralized cloud mining
• Earn free bitcoin daily
• Native Token on Pre-Sale Now – BTCMTX
• Staking Rewards: Over 100% APY

<img class="inContentProviderSingle–img float-right" alt="bitcoin Minetrix” width=”125″ height=”60″ src=”https://technicalterrence.com/wp-content/uploads/2023/11/Celsius-bankruptcy-plan-approved-2-billion-worth-of-Bitcoin-and”https://technicalterrence.com/crypto/bitcoin/”>bitcoin-minetrix.svg”/>bitcoin-minetrix.svg” alt=”bitcoin Minetrix” width=”125″ height=”60″/>