Celsius customers to vote on settlement plan with Fahrenheit after judge gives okay
Bankrupt crypto lender Celsius can start sending out ballots to its customers for a vote on a proposed settlement plan that would see a consortium called Fahrenheit buy Celsius’ assets and launch a new company. That company would distribute Celsius assets and equity in the new company to its customers.
Judge Martin Glenn of the Southern District of New York bankruptcy court approved a motion to allow Celsius customers to vote on a settlement of class claims to reimburse participants in Celsius’ Earn program, as well as to increase customers’ recoveries by 5% to resolve claims concerning fraud and misrepresentation by Celsius management.
According to Bloomberg, the asset distribution would be worth about $2 billion. It added that Glenn additionally instructed Celsius to provide a “plain language” explanation of the settlement and material on crypto volatility and challenges Celsius’ mining operations could face.
Related: Celsius seeks to convert alts to Bitcoin and Ether under reorganization plan
Customers have to opt out of the settlement in order not to participate. Celsius lawyer Chris Koenig was quoted by Bloomberg as saying disbursements could begin before the end of the year.
If approved, the plan will still require court approval, which could come in October.
Fahrenheit won an auction for Celsius assets on May 25. Part of the offer was a promise for US Bitcoin Corp., one of the consortium members, to construct a new 100-megawatt crypto mining plant.
#CELSIUS HEARING LIVE: #SEC making their appearance for the record. K&E giving an update on disclosure statement objections. UST & debtors will move objections to confirmation statements. Earn Ad Hoc amended reservation of rights. K&E say $CEL should not be a
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