Celsius Network, a former cryptocurrency lender, has been cleared to exit bankruptcy and plans to start repaying customers whose accounts have been frozen for over a year. The company has transformed into a creditor-owned Bitcoin mining firm as part of a broader proposal to repay customers.
Celsius will repay customers through a combination of cryptocurrency and stock in the new company, NewCo, which will be funded by $450 million in crypto held by #Celsius and a $50 million investment by Fahrenheit, an investment group that purchased the right to manage NewCo’s mining and staking operations earlier this year.
Celsius lawyers have said the platform could start distributing assets early next year. The plan still needs to be approved by the Securities and Exchange Commission. Celsius owed over $4.7 billion to more than 100,000 creditors, according to its initial bankruptcy filing.
