{"id":137203,"date":"2023-09-02T06:14:58","date_gmt":"2023-09-02T00:44:58","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=137203"},"modified":"2023-09-02T06:14:58","modified_gmt":"2023-09-02T00:44:58","slug":"bankrupt-celsius-networks-to-repay-customers-via-new-company-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bankrupt-celsius-networks-to-repay-customers-via-new-company-crypto-news\/","title":{"rendered":"Bankrupt Celsius Networks to Repay Customers Via New Company – Crypto News"},"content":{"rendered":"

<\/p>\n

\n

On Monday, August 14, bankrupt crypto lender Celsius Networks secured the court permission to start polling its account holders over the new proposal of repaying an estimated $2 billion in Bitcoin (BTC) and Ether (ETH) via a new user-owned company.<\/p>\n

US Bankruptcy Judge Martin Glenn said that he would start sending ballots to Celsius account holders along with the voting materials having clear language explanations of the company\u2019s plans to repay customers.<\/p>\n

<\/p>\n

However, Judge Glenn said that he would give the approval after Celsius\u2019s advisers provide additional information regarding the volatility of the crypto industry. He also asks about any difficulties that might affect the company\u2019s crypto-mining activities.<\/p>\n

Interestingly, some creditors have already challenged the repayment plans while other customers have objected to them.<\/p>\n

Celsius Networks\u2019 Repayment Plan<\/h3>\n

The bankrupt crypto lender has put forth a repayment plan under the leadership of investment firm Arrington Capital. A consortium named Fahrenheit LLC, which successfully acquired the crypto lender\u2019s assets through a bankruptcy auction earlier this year, is leading the proposal.<\/p>\n

<\/p>\n

Customers will receive partial repayment through ownership in the new entity, which will manage Celsius\u2019 mining activities and take over responsibilities like institutional loans and investments, including $500 million in liquid cryptocurrencies.<\/p>\n

<\/p>\n

As per court documents, a committee representing Celsius account holders and other creditors mentioned that if the Fahrenheit deal is finalized, retail borrowers might recover over 85 cents per dollar. The new company will have strong financial backing and no substantial debt, becoming the first publicly-listed firm with notable holdings in both Bitcoin and Ethereum. Additionally, the plan outlines the distribution of around $2 billion worth of crypto tokens to creditors.<\/p>\n

Celsius lawyer Chris Koenig said that the company is on track to start repaying its customers by the end of 2023. But Judge Glenn said that there\u2019s still a lot of work pending in this case.<\/p>\n

Celsius Creditors Object<\/h3>\n

During a hearing, Celsius account holders expressed their unhappiness with the company\u2019s repayment strategy, reports<\/a> Bloomberg. They are hesitant to receive shares in a new and uncertain project. A few customers also want Celsius to give them back their CEL tokens. They disagree with the company\u2019s idea of considering each CEL token worth 25 cents.<\/p>\n

However, Judge Glenn stated that Celsius account holders won\u2019t get the CEL tokens. The Securities and Exchange Commission has claimed that Celsius and its former CEO thought of CEL tokens as similar to stocks in a public company. Usually, these stocks lose value in a situation like Chapter 11 bankruptcy. Judge Glenn explained that CEL tokens can\u2019t be given out because they depended on Celsius\u2019 value. He also added that after the Chapter 11 bankruptcy case conclusion, Celsius won\u2019t exist anymore.<\/p>\n

Last month, federal prosecutors charged Celsius CEO Alex Mashinsky<\/a> with fraud and accused him of manipulating CEL\u2019s value and inflating it artificially.<\/p>\n

<\/p>\n

<!– <\/p>\n

\n
\n
\n
\n

<\/p>\n

\"\"<\/div>\n
Top Crypto Marketing Firms \/ Agencies 2023; Here\u2019s Best Picks [Updated]\n <\/div>\n

<\/a><\/p><\/div>\n<\/p><\/div>\n

\n
\n

<\/p>\n

\"\"\"\"<\/div>\n
Top 10 Web3 Games To Explore In 2023; Here List\n <\/div>\n

<\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

–><\/p>\n

\n
\n
\n
\n
\n<!–<\/p>\n
<\/div>\n

–><\/p>\n

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills. <\/p>\n<\/p><\/div>\n

\n \"\"\"\" <\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

<!– <\/p>\n

\n
\n Crypto Stories<\/span><\/p>\n

View all<\/a>\n <\/div>\n

\n
\n
\n
\n <\/p>\n
\"twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720\"\"twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720\"<\/div>\n
Twitter is now worth just 33% of Elon Musk\u2019s purchase price <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

\n
\n
\n <\/p>\n
\"will_cramer_curse_strike_again_720\"\"will_cramer_curse_strike_again_720\"<\/div>\n
Will Cramer Curse Strike Again? <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

\n
\n
\n <\/p>\n
\"mercedes_benz_to_release_nft_collection_with_fingerprints_dao_720\"\"mercedes_benz_to_release_nft_collection_with_fingerprints_dao_720\"<\/div>\n
Mercedes Benz To Release NFT Collection With Fingerprints DAO <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

On Monday, August 14, bankrupt crypto lender Celsius Networks secured the court permission to start polling its account holders over the new proposal of repaying an estimated $2 billion in Bitcoin (BTC) and Ether (ETH) via a new user-owned company. US Bankruptcy Judge Martin Glenn said that he would start sending ballots to Celsius account […]<\/p>\n","protected":false},"author":2,"featured_media":84807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-137203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=137203"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137203\/revisions"}],"predecessor-version":[{"id":148509,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137203\/revisions\/148509"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/84807"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=137203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=137203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=137203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}