Celsius Network has gained approval from a U.S. bankruptcy court to restructure its operations. According to this plan, consumers would receive their cryptocurrency back, and a new business controlled by Celsius’s creditors will be established.
Under the direction of Fahrenheit LLC, a partnership that includes the hedge fund Arrington Capital, the company has reorganized and will focus on tasks like mining bitcoin and generating revenue through “staking,” or confirming transactions on the blockchain, for fees. Judge Martin Glenn’s signature on the court’s ruling was released to the public on Thursday.
Judge Martin Glenn of the Southern District of New York Bankruptcy Court verified on November 9 that the bankruptcy plan was approved by Celsius creditors in a majority. The agreed plan calls for giving Celsius’s creditors stock in a new business (NewCo) and roughly $2 billion worth of Bitcoin.
According to a post on X, Celsius is now developing a strategy to get out of Chapter 11 and is anticipated to emerge from bankruptcy in early 2024.