The Celsius Network’s Bankruptcy Plan: What You Need to Know
The now-defunct cryptocurrency lending company, Celsius Network, has received permission from US Judge Martin Glenn to send a restructured bankruptcy plan to its creditors. If accepted, affected customers could retrieve up to 67% of their funds through a return of liquid digital currencies such as Bitcoin.
Key Points:
- Celsius can now introduce an advanced bankruptcy proposal to its creditors, potentially making them owners of a new entity.
- Affected clients may be able to retrieve up to 67% of their funds, funded through liquid cryptocurrencies, equity shares in the new firm, and proceeds from legal action against the former CEO.
- Fahrenheit Group, a consortium of organizations, will purchase a minority stake in the new business and list its stock on Nasdaq.
- The new organization plans to pursue litigation against the former CEO.
- While some creditors oppose the bankruptcy plan, the official committee representing junior creditors supports it.
Hot Take: The approval of Celsius Network’s bankruptcy plan presents a potential opportunity for affected customers to recover a significant portion of their funds. However, the ongoing legal proceedings against the former CEO highlight the alleged fraudulent actions that led to the company’s collapse. It serves as a reminder for crypto investors to exercise caution and conduct thorough due diligence when engaging with lending platforms.
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