The court confirmed Celsius’ bankruptcy exit plan, $2B in crypto to go to creditors
Celsius bankruptcy plan approved. The way is now clear for customers to receive some of their money back and shares in the reorganized company, which will be called Newco.
New York Bankruptcy Court Southern District Judge Martin Glenn on November 9th certified the bankruptcy plan approved by Celsius Creditors on September 27th in a substantial amount, according to the plan, about $2 billion in Bitcoin (BTC) and Ether (ETH) (around $2 billion in Bitcoin (BTC) and Ether (ETH) ) along with equity in Newco to Celsius Creditors again. It will spread. The company said it hopes to begin repaying creditors by the end of the year.
Many Celsius lenders were participants in the Earn program to earn weekly rewards by holding CEL tokens locked for a year. Judge Glenn wrote in his decision.
“Nothing in this Confirmation Order or the Plan shall constitute a finding by the Court as to whether the CEL Token or the Earn Program are securities under any securities laws or otherwise.”
The United States Securities and Exchange Commission says similar programs are securities.
RELATED: Judge Rejects Stakeholders' Request for Representation in Celsius Bankruptcy Case
Newco expands mining operations of former crypto lender Celsius It will also monetize illegal Celsius assets and undertake other development activities, subject to regulatory approval.
Newco is managed by the Fahrenheit Consortium, which is made up of several crypto-native people and organizations. One of the members of the consortium is Prof Group, which is also said to be bidding for FTX.
pic.twitter.com/PwyMicXbr5
— Celsius NewCo Community (@CelsiusNewCo) November 6, 2023
Celsius declared bankruptcy in July 2022. Former CEO Alex Mashinsky was indicted in July 2023 on charges of securities fraud, commodities fraud and wire fraud. He is expected to appear in court in September 2024 and remains free on $40 million bail.
Former Celsius chief revenue officer Ronnie Cohen-Paven has pleaded guilty to fraud and price manipulation and will be sentenced on December 11.
Magazine: Tiffany Fong Burns Celsius, FTX and NY Post: Hall of Flame.
