Celsius Bankruptcy Plan Approved
If you are a Celsius customer, you will be pleased to know that the bankruptcy plan has been given the green light. This means that you can expect to receive some of your funds back and also get shares in the reorganized company, which will now be known as NewCo.
Judge Martin Glenn of the Southern District of New York Bankruptcy Court confirmed the approval of the plan on Nov. 9. This plan, which was supported by Celsius creditors on Sept. 27, will see around $2 billion in Bitcoin (BTC) and Ether (ETH) redistributed to creditors, along with equity in NewCo. The company aims to start reimbursing creditors by the end of the year.
Many of the Celsius creditors were participants in its Earn program, which allowed them to earn weekly rewards by holding CEL token that were locked for a year. Judge Glenn emphasized that this confirmation order does not constitute a finding by the court on whether CEL Token or the Earn Program are securities under any securities laws.
The United States Securities and Exchange Commission has made claims that similar programs are considered securities.
Hot Take: What Does This Mean for Celsius Customers?
This approval of the bankruptcy plan is good news for Celsius customers as it paves the way for them to get back some of their funds and have a stake in the reorganized company, NewCo. The redistribution of around $2 billion in Bitcoin and Ether along with equity in NewCo will bring relief to many creditors who were part of Celsius’s Earn program. Despite some regulatory concerns, this development is a step forward for those affected by Celsius’s bankruptcy.
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