🚨 Get Your Free NFT Certificate Mint by Completing the Web3 Exam! START NOW
My Learnlist: Coming Soon!
My Learnlist: Coming Soon!

Learn by real-life examples: Select, Track & Understand any cryptos with the unique Learnlist feature!

Notify Me!
Portfolio: Coming Soon!
Portfolio: Coming Soon!

Set your wallet & get powerful insights backed by data. Easily learn how to use it for your highest rewards!

Notify Me!

Celsius Gains Approval for Its Bankruptcy Plan, Aims to Return $2B in Crypto

Celsius Gains Approval for Its Bankruptcy Plan, Aims to Return $2B in Crypto

Key Takeaways

  • Judge Martin Glenn approved the Celsius bankruptcy exit plan, allowing the distribution of $2 billion in crypto assets to creditors.
  • NewCo, managed by the Fahrenheit consortium, will focus on expanding mining operations and monetizing Celsius's assets.
  • The Celsius saga involves legal challenges, including the arrest of its former CEO, Alex Mashinsky, and the guilty plea of its former chief revenue officer, Roni Cohen-Pavon.

Judge Martin Glenn of the Southern District of New York Bankruptcy Court confirmed the approval of the Celsius bankruptcy exit plan.

The plan, overwhelmingly approved by Celsius creditors on September 27th, paves the way for the distribution of approximately $2 billion in Bitcoin (BTC) and Ether (ETH) to the creditors. Additionally, they will receive equity in a newly reorganized entity, NewCo.

How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)

How to Pick the Right DeFi dApp? (Dos and Don’ts Explained) How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)

The bankruptcy plan's confirmation, issued on November 9th, marks a crucial step towards resolving the financial turmoil Celsius and its stakeholders face.

The plan aims to reimburse creditors, many of whom participated in Celsius's Earn program. This program offered weekly rewards for holding CEL tokens locked for a year.

In the decision, Judge Glenn emphasized that the court's confirmation of the bankruptcy plan does not constitute a judgment on whether the CEL Token or the Earn Program are considered securities.

Nothing in this Confirmation Order or the Plan constitutes a finding of the Court under any securities laws or otherwise as to whether CEL Token or the Earn Program are securities.

NewCo, under the management of the Fahrenheit consortium, will focus on expanding Celsius' mining operations. This includes monetizing illiquid assets of the former crypto lender and engaging in developmental activities.

The backstory of Celsius's bankruptcy, declared in July 2022, involves significant legal challenges. Its former CEO, Alex Mashinsky, was arrested in July 2023 over securities fraud, commodities fraud, and wire fraud charges. Awaiting trial in September 2024, Mashinsky is currently out on a $40 million bail

Additionally, former chief revenue officer Roni Cohen-Pavon pleaded guilty to fraud and price manipulation charges, with sentencing scheduled for December 11th.

The bankruptcy exit plan represents a turning point for Celsius and its creditors. The distribution of significant crypto assets and equity in NewCo offers a glimpse of recovery and restructuring in the volatile world of cryptocurrency lending and mining.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

Loading...
binance
×
Verified

$600 WELCOME BONUS

Earn Huge Exclusive Binance Learners Rewards
Rating