Celsius Plans New Creditor-Owned Company, Court Grant Will Hold Account Holder Votes

Odaily Planet Daily News The bankrupt encrypted lending platform Celsius plans to set up a new company owned by creditors and distribute about $2 billion in Bitcoin and Ethereum. The plan has received permission from the bankruptcy court to conduct customer voting. U.S. Bankruptcy Judge Martin Glenn said on Monday he would allow Celsius to begin sending ballots and other voting materials to account holders explaining in plain language the company's plans to repay customers. Celsius is proposing a fresh start under the leadership of investment firm Arrington Capital, part of the Fahrenheit LLC consortium that won assets of Celsius in a bankruptcy auction earlier this year. Customers will be partially repaid through equity in the new company, according to court documents. The new company will operate Celsius’ mining operations and take over its institutional loans, private equity and venture capital investments, and $500 million in “liquid cryptocurrency” investments. Celsius lawyer Chris Koenig told the hearing the company was on track to begin repaying creditors by the end of 2023. Celsius' repayment plan is still being opposed by some customers and could be challenged by other creditors. The court plans to consider approving the plan in October. (Bloomberg) According to previous reports, Celsius plans to close its application within 90 days and distribute $2.03 billion in encrypted assets, and has selected PayPal to distribute BTC.