Celsius Network’s Bankruptcy Judge Urges SEC to Decide on Crypto-to-Mining Pivot Plan

In a recent court hearing, Judge Martin Glenn called on the U.S. Securities and Exchange Commission (SEC) to quickly decide on Celsius Network LLC’s transformative plan. The crypto lending company, currently in bankruptcy, is seeking to restructure itself into a publicly-traded Bitcoin mining firm. This comes after Celsius and its creditors swiftly moved through Chapter 11 bankruptcy proceedings, according to bloomberg.

Judge Glenn emphasized the need for the SEC to expedite its decision-making process. He believes that any roadblocks should be addressed sooner rather than later to ensure a smooth transformation. If approved by the judge, Celsius’s plan would still require clearance from the SEC to proceed.

The proposed restructuring involves partially repaying Celsius’s frozen-account customers through a mix of cryptocurrency and stock in the new Bitcoin mining company. Arrington Capital would lead this new entity. However, the plan has met resistance from some customers, who argue they would benefit more from the firm’s liquidation rather than receiving stock in an untested venture.

Adding another layer of complexity, critics also questioned the fees paid to Celsius’s bankruptcy advisers and the process of soliciting creditor votes for the repayment proposal. There's also a key dispute over the value of Celsius’s native CEL token.

Judge Glenn stated he would issue a ruling on the proposal as soon as possible. If the restructuring fails to get approval, Celsius could be headed for liquidation, which could potentially offer more in Bitcoin and Ethereum to its customers but might present a setback to its creditors.

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