Crypto lender Celsius Network cleared to exit bankruptcy
Crypto lender Celsius Network received U.S. bankruptcy court approval for a restructuring plan that will return cryptocurrency to customers and create a new company owned by Celsius creditors.
U.S. Bankruptcy Judge Martin Glenn in Manhattan signed off on the restructuring in an order published on Thursday. The reorganized business will be managed by Fahrenheit LLC, a consortium that includes hedge fund Arrington Capital, and it will focus on mining new bitcoin and earning «staking» fees by validating blockchain transactions.
New Jersey-based Celsius filed for Chapter 11 protection in July 2022, one month after freezing customer accounts to prevent withdrawals. Celsius, which was once valued at $3 billion, was one of the largest crypto collapses last year.
The crypto lender is working to implement the plan and is expected to emerge from Chapter 11 in early 2024,according to a post on X, formerly known as Twitter.
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View Details» Michael Arrington, founder of Arrington Capital, on Thursday said Celsius' revival stands apart from other crypto companies that collapsed in 2022 and were unable to reorganize.
Crypto lenders BlockFi and Voyager Digital were wiped out in bankruptcy, and cryptocurrency exchange FTX remains stuck in Chapter 11 proceedings.
«Today marks the culmination of a journey that has been far too long and far too expensive for Celsius creditors,» Arrington said in an email. «We are eager to dig
