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Celsius Bankruptcy Exit Plan Approved, $2B Crypto for Creditors
10/11/2023
The Celsius bankruptcy plan has received approval from the Southern District of New York Bankruptcy Court, allowing customers to receive partial reimbursement and become shareholders in the reorganized company called NewCo. The creditor-approved plan involves redistributing around $2 billion in Bitcoin to Celsius creditors. The reimbursement process is expected to commence by the end of the year. Many creditors participated in Celsius's Earn program, earning weekly rewards by holding CEL tokens. The court's decision clarified that it does not constitute a finding on whether CEL Token or the Earn Program are securities. The new entity, NewCo, managed by the Fahrenheit consortium, will expand Celsius's mining operations, monetize illiquid assets, and undergo other developmental activities, subject to regulatory approval. Celsius declared bankruptcy in July 2022, and its former CEO, Alex Mashinsky, faces charges of securities fraud, commodities fraud, and wire fraud.
