In a significant development, Celsius Network, a prominent crypto lending platform, has successfully gained approval from a U.S. bankruptcy court to undergo a comprehensive restructuring. This game-changing plan involves the systematic return of cryptocurrency to the platform’s customers and the establishment of a new entity, to be owned by the creditors of Celsius.
The reins of the reorganized business will be held by a group named Fahrenheit LLC, which boasts the involvement of the Arrington Capital hedge fund. This revamped Celsius Network will shift its focus towards lucrative activities such as bitcoin mining and earning fees through “staking” by validating transactions on the blockchain.
The court’s decisive move, endorsed by Judge Martin Glenn, was unveiled to the public on Thursday, marking a pivotal moment in Celsius Network’s journey through Chapter 11. Notably, Judge Martin Glenn, from the Southern District of New York Bankruptcy Court, confirmed on November 9 that Celsius creditors overwhelmingly approved the bankruptcy plan.
According to the greenlit plan, an estimated $2 billion worth of Bitcoin will be distributed among Celsius creditors, accompanied by a stake in a new company known as NewCo. The announcement, shared via Celsius Network’s official Twitter account, expressed satisfaction with the successful creditor voting process and the subsequent confirmation hearing.
Celsius is now actively charting its course through Chapter 11 and anticipates emerging from bankruptcy status in early 2024, as detailed in a post on X. The crypto community eagerly awaits the unfolding of Celsius Network’s next chapter, filled with promises of crypto returns and exciting new ventures.