Troubled crypto lender Celsius Network plans to start paying back customers by the end of the year, it told a judge. This occurred during an Oct. 2 hearing seeking approval for the company's restructuring plan.

Celsius' legal counsel Christopher Koenig, who made the opening statement at the confirmation hearing in New York, said that the new company called "NewCo" will exit the process with $450 million in seed funding.

A filing filed on September 29 shows that Celsius plans to partially repay creditors using $2.03 billion in Bitcoin (BTC) and Ethereum (ETH) and shares in the new company.

NewCo is backed by a group of companies in a consortium called Fahrenheit LLC, which will manage the mining and staking business.

The judge sitting on the case, Martin Glenn, is considering approving Celsius' restructuring plan. The plan will also need to be approved by safety regulators. Although it received a majority vote in favour, it is objected to by some creditors.

If the Celsius plan is approved, it would be a revival of one of the failed crypto platforms in 2022 in Chapter 11 bankruptcy.

Celsius customers have been waiting to be compensated since the company halted withdrawals in June 2022 following the collapse of the Terra/Luna ecosystem.

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