Celsius Network, a crypto lending platform, has gained approval from a U.S. bankruptcy court to restructure its operations. This plan involves returning cryptocurrency worth $2 billion to the platform’s customers and making them shareholders in the new company.
The reorganized business, overseen by a group called Fahrenheit LLC (which includes the Arrington Capital hedge fund), will concentrate on activities such as mining bitcoin and earning fees through “staking” by validating transactions on the blockchain. The court’s decision, signed by Judge Martin Glenn, was made public on Thursday.
On November 9, Judge Martin Glenn from the Southern District of New York Bankruptcy Court confirmed that Celsius creditors overwhelmingly approved the bankruptcy plan. According to the approved plan, approximately $2 billion worth of Bitcoin will be distributed to Celsius creditors and ownership in a new company (NewCo).
Lawyers for Celsius indicated that the platform could commence the distribution of assets in the early months of next year.
Celsius is currently working on a plan to navigate through Chapter 11 and is expected to come out of this bankruptcy status in early 2024, as mentioned in a post on X.
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