Celsius Creditors Favor Crypto Reimbursement Plan with 98% Vote

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Celsius Creditors Favor Crypto Reimbursement Plan with 98% Vote – Crypto News

Published

2 years ago

September 26, 2023

Dripp

Celsius creditors, impacted by the company’s bankruptcy, have cast their votes in favor of a reorganization plan. Significantly, this plan promises to repay them in bitcoin, ether, and equity in a newly formed entity, “NewCo.” Most classes reportedly showed an overwhelming acceptance rate of over 98 percent for the proposal.

The reimbursement, however, has yet to be completed since it is now within the remit of the United States Bankruptcy Court for the Southern District of New York. Consequently, a session to provide final approval has been set for October 2.

Varied Responses

Besides the support, the plan also faced opposition. Some creditors openly challenged the strategy, expressing their reservations about receiving shares in a brand-new, untested venture. Additionally, there was a clamor for the return of CEL tokens, the native currency of Celsius. However, the court restated these hopes, citing legal and financial complexities.

Moreover, NewCo’s management will overseen by the Fahrenheit Group, a consortium that successfully acquired Celsius’ assets earlier this year. This change promises to build out robust Bitcoin mining operations and introduce value-driven, compliant business opportunities.

Celsius Legal Entanglement

Consequently, the implications of this bankruptcy resolution are far-reaching. Celsius, once a significant player in the crypto lending space, came under scrutiny following allegations of fraud, unregistered sales, and price manipulation of its CEL token. The company’s downfall serves as a cautionary tale in the volatile world of cryptocurrency.

While the reorganization plan offers a glimmer of hope to the creditors, the final chapter in the Celsius saga has yet to be written. The upcoming court hearing will be crucial in determining the eventual fate of billions in assets and the future of NewCo.