Defunct crypto lender Celsius Network has been cleared by the court<\/a><\/span>\u00a0to go ahead with its bankruptcy restructuring plans.<\/span><\/p>\n Precisely, Celsius Network has won the United States bankruptcy court\u2019s approval to transition into a creditor-owned Bitcoin (BTC) mining firm. This is all part of the big picture which involves repaying customers who had their assets frozen <\/a><\/span>when the firm was faced with a liquidity crisis over a year ago.\u00a0<\/span><\/p>\n <\/p>\n Judge Martin Glenn of the New York bankruptcy court mentioned his plans to confirm that the embattled crypto firm<\/a><\/span>\u00a0will repay affected customers in a combination of crypto assets and stock\u00a0in the new creditor-owned Bitcoin mining firm. According to Celsius\u2019 legal team, the distribution of assets to customers is likely to commence early next year.<\/span><\/p>\n The latest development is a significant milestone for Celsius Network after a very tumultuous year which contributed to its bankruptcy.\u00a0<\/span><\/p>\n <\/p>\n Celsius has been seeking a restructuring plan that is centered on its customers and at a time, the firm proposed repayment of an estimated $2 billion in Bitcoin and Ethereum (ETH) under the leadership of investment firm Arrington Capital. This was after Fahrenheit LLC successfully acquired Celsius\u2019 assets through a bankruptcy auction that was held earlier in the year.<\/span><\/p>\n <\/p>\n Based on the proposal, customers were meant to receive partial repayment by giving them a share in the new company which would be charged with managing the crypto lender\u2019s mining activities. Unfortunately, these customers expressed their displeasure<\/a> o<\/span>ver the repayment proposal. They were concerned about owning shares in a new project whose integrity is yet to be proved.<\/span><\/p>\n Later in September, Celsius Network creditors voted in favor<\/a><\/span> of the restructuring plan which involved the new entity NewCo. Markedly, the restructuring proposal received 98% Yes in its favor, pushing Celsius to move on to seek approval from the court.<\/span><\/p>\n On the other hand, former Celsius Network CEO Alex Mashinsky who was charged with defrauding the company\u2019s customers is set to appear in court<\/a><\/span>\u00a0next year as his criminal trial is scheduled for September 17th, 2024. Mashinsky and Roni Cohen-Pavon, the company\u2019s former Chief Revenue Officer were both accused of lying to customers about the financial status of the firm.<\/span><\/p>\nCelsius Network to Activate Repayment Plan<\/strong><\/h2>\n
The Roller Coaster Ride With Original Plan<\/strong><\/h2>\n
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