Celsius Provides Critical Update On Reimbursement• November 9, 2023 8:52 pm • Comments
Now-defunct crypto lending platform Celsius has provided a critical update on its bankruptcy process.
According to recent court documents, Celsius has gotten the green light from a judge to distribute close to $2 billion in assets to creditors beginning next year.
Some sources say the distributions could begin as early as January 2024. Bloomberg confirmed:
US Bankruptcy Judge Martin Glenn said Thursday he would confirm Celsius’ plan to repay customers through a combination of crypto assets and stock in the new, publicly listed Bitcoin mining company.
Celsius lawyers have said the platform could start distributing assets early next year.
Previously, ProCoin News reported that former Celsius CEO Alex Mashinsky was arrested and charged by U.S. authorities in July of 2023.
The disgraced CEO could face up to 20 years behind bars if convicted. Here’s what we currently know about Celsius’ $2 billion reimbursement to creditors:
Celsius Network LLC has received approval from a bankruptcy court judge to distribute approximately $2 billion worth of Bitcoin and Ethereum to creditors, with the distribution likely to begin early next year.https://t.co/GABg0wHyD9
— Wu Blockchain (@WuBlockchain) November 10, 2023
Failed crypto lender Celsius Network cleared to exit bankruptcy according to Bloomberg.
Celsius Network has said it could start repaying customers in January
— Whale (@WhaleChart) November 9, 2023
Court Approval today, a major milestone for all involved in the Celsius bankruptcy proceedings.
— Arrington Capital (@Arrington_Cap) November 9, 2023
#celsiusbankruptcy #CelsiusNetwork — for the borrowers , please take a look at para 269. Ownership of the collateral was only determined for those who voted to reject the plan. pic.twitter.com/MamAwacZHe
— David Adler (@DavidJAdler1991) November 9, 2023
Celsius will partially repay customers whose accounts have been frozen since the company filed for bankruptcy in July 2022, according to the opinion, in addition to repaying those customers through a combination of cryptocurrency and stock in the new company.
The new company, NewCo, will be funded by $450 million in crypto held by Celsius and a $50 million investment by Fahrenheit.
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