The Southern District of New York Bankruptcy Court approved Celsius’ restructuring and customer repayment plan. The court approval came a month after Celsius submitted the proposal.
The plan is set to partially repay Celsius’ creditors in cryptocurrency, including $2 billion worth of Bitcoin and Ethereum. Creditors will also receive shares of NewCo, a new crypto mining company funded by Celsius and owned by creditors.
Moving Forward
NewCo’s mining and staking operations are currently run by Fahrenheit, an investment group led by TechCrunch founder Michael Arrington. Fahrenheit reached an agreement with Celsius Network in May 2023.
Despite granting greenlight from the court, the plan still needs to be accepted by the U.S. Securities and Exchange Commission (SEC). Judge Martin Glenn for the New York Court has urged the securities agency to decide on the plan.
If things go according to the plan, repayment distribution…
