Bankrupt Celsius Network Receives Permission to Seek Creditor Approval
Bankrupt crypto lender Celsius Network has been given the go-ahead by a US bankruptcy judge to send its proposed bankruptcy plan to its creditors. The plan, if approved, will allow Celsius to exit Chapter 11 bankruptcy and become an entity owned by its creditors. The lender has provided enough information for its creditors to vote on the proposal.
Main Breakdowns:
- Celsius granted permission to send proposed bankruptcy plan to creditors
- Creditors have sufficient information to vote on the plan
- Celsius filed for Chapter 11 bankruptcy in 2022
- Fahrenheit Group to take control of remaining business lines
- Customers may see disbursements of their assets before the end of the year
Fahrenheit Group to Take Control of Remaining Business Lines
Under Celsius’ bankruptcy plan, retail customers will receive some crypto deposits, while the Fahrenheit Group will take over the lender’s remaining business lines, including bitcoin mining and staking. The majority of customers with interest-bearing Earn accounts will receive a 67% recovery, which will include the return of liquid crypto assets, equity shares in the new entity, and proceeds from litigation against Celsius’ founder and other executives.
Hot Take:
Celsius Network’s permission to seek creditor approval for its proposed bankruptcy plan is a step towards resolving the uncertainty faced by its customers. The involvement of the Fahrenheit Group in taking over the lender’s business lines provides hope for a successful recovery. However, the legal challenges against Celsius’ founder highlight the potential risks associated with the company. It remains to be seen how the creditors will vote on the proposal and if customers will receive their assets in a timely manner.
By
By
By
By
By
By