Cryptocurrency lender Celsius receives bankruptcy plan approval
Key Takeaways
- Judge Martin Glenn approved Celsius’ bankruptcy liquidation plan that would allow $2 billion in cryptocurrency assets to be distributed to creditors.
- NewCo, managed by the Fahrenheit consortium, will focus on expanding mining operations and monetizing Celsius assets.
- The Celsius story has included legal troubles, including the arrest of former CEO Alex Mashinsky and the guilty plea of former Chief Revenue Officer Roni Cohen-Pavon.
Martin Glenn, U.S. Bankruptcy Court Southern District Judge in New York Celsius bankruptcy liquidation plan approved.
The plan, which was overwhelmingly approved by Celsius creditors on September 27, paves the way for: Approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) distributed to creditors. Besides, they Acquires a stake in NewCo, a newly reorganized company..
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The bankruptcy plan confirmation issued on November 9 Important steps to resolve the financial crisis Celsius and its stakeholders are faced with
This plan aims to: pay off creditors, many of whom took part in Chelsea’s Earn program. This program offers If you store CEL tokens for one year, you can receive weekly rewards..
Judge Glenn emphasized in this ruling that the court confirmed the bankruptcy plan. It does not constitute a judgment as to whether CEL tokens or the savings program are considered securities..
Nothing in this Confirmation Order or Plan shall constitute a ruling under the Securities Act or any other court as to whether the CEL Tokens or Savings Programs are securities.
NewCo, managed by the Fahrenheit consortium, Focus on expanding Celsius’ mining business. These include: Monetizing illiquid assets Former cryptocurrency lender Participate in development activities.
The story behind Celsius’ bankruptcy declared in July 2022, which entails serious legal issues. former CEO, Alex Mashinsky was arrested in July 2023. on charges of securities fraud, commodities fraud, and wire fraud. Awaiting trial in September 2024. Mashinsky is currently free on $40 million bail..
Additionally, former Chief Revenue Officer (CRO) Roni Cohen-Pavon pleaded guilty to fraud and price manipulation charges.Sentencing is scheduled for December 11.
The bankruptcy liquidation plan marks a turning point for Chelsea and its creditors. NewCo’s distribution of significant cryptocurrency assets and shares offers a glimpse of recovery and restructuring in the volatile world of cryptocurrency lending and mining.
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