You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Court Approves Celsius Network’s Bankruptcy Exit, Transition to Bitcoin Miner

The U.S. Bankruptcy Court has given approval for Celsius Network LLC to transition from a failed crypto lender to a Bitcoin mining business. The court’s decision allows the company to repay its creditors using a combination of digital assets and shares in the new Bitcoin mining venture, which is set to be publicly traded. The approval paves the way for asset distribution to begin early next year, offering relief to affected customers whose accounts have been frozen for over a year.

Celsius Network’s Collapse

Celsius Network, which filed for Chapter 11 bankruptcy protection in 2022, revealed in its bankruptcy filing that it held $4.3 billion in assets against $5.5 billion in liabilities, resulting in around $1.2 billion in deficits. The majority of the liabilities consisted of $4.72 billion worth of user deposits. Celsius has been exploring ways to restructure and compensate customers, with the possibility of repaying them using the mining equipment it owns. The company’s mining operation, Celsius Mining LLC, owns 80,850 mining rigs, of which 43,632 were reported to be “in operation.”

The Restructuring Plan

In the subsequent year, Celsius Network explored potential reorganization plans and obtained court permission to poll account holders on its plan to restart as a “new user-owned company,” with an option for users unwilling to participate to opt out. The restructuring plan, with 95% of the voted creditors in favor, received final approval from the court, marking a significant milestone in Celsius’ efforts to maximize asset distribution to its customers. While awaiting approval from the Securities and Exchange Commission (SEC), Celsius may seek eventual liquidation if the mining operation proposal fails. If successful, the plan is expected to be implemented, and Celsius aims to “emerge from Chapter 11” in early 2024.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

EUBOF Advises EU On Blockchain And AI Integration
27.05.2024By
Arbitrum Community Supports Proposal to Allocate 200M ARB to Web3 Game Development
27.05.2024By
Normie Team Negotiates 90% Fund Return After $41.7M Market Cap Plunge
27.05.2024By

Latest news

EUBOF Advises EU On Blockchain And AI Integration
27.05.2024
Arbitrum Community Supports Proposal to Allocate 200M ARB to Web3 Game Development
27.05.2024
Normie Team Negotiates 90% Fund Return After $41.7M Market Cap Plunge
27.05.2024
Cristiano Ronaldo Teams Up with Binance for New NFT Collection Despite Ongoing Legal Battle
27.05.2024
Ethereum Layer 2 TVL Sets a New All-Time High at $47 Billion
27.05.2024
Bitcoin White Paper Returns to Bitcoin.org After Craig Wright Fails to Prove He is Nakamoto
27.05.2024
“I Am Very Positive and Open Minded To Cryptocurrency”: Trump
27.05.2024
Nearly 40% of Institutional Investors Had Crypto Exposure in 2023, Survey Reveals
24.05.2024
Forex and Crypto Investment Fraud Busted in Malaysia, Ten Arrested and Millions Seized
24.05.2024
Dormant Dogecoin Whale Becomes Active Again After A Decade
24.05.2024