Crypto lender Celsius is seeking final court approval to initiate customer repayments and gain approval for its reorganization plan. The company’s legal counsel stated that a new entity called NewCO will emerge with $450 million in seed funding once the reorganization is approved. The repayment to creditors will involve $2.03 billion in Bitcoin and Ethereum and shares in the newly established company. The troubled network plans to enter the Bitcoin mining niche with the new company offering a user-owned Bitcoin miner. The funding for NewCO will primarily come from a consortium led by Arrington Capital. Most creditors have approved the restructuring plans, and the company will begin the transactions once the plans are confirmed. The Judge in the case has yet to decide whether to approve the reorganization plan. Celsius has faced troubles over the past year, including a fine by the U.S. Federal Trade Commission. If approved, this could mark one of the first successful resurrections of a failed crypto platform through a Chapter 11 bankruptcy case. Celsius founder Alex Mashinsky is also facing legal trouble for fraud charges..
#Celsius #Seeks #Court #Approval #Restructuring #Customer #Repayments
#Celsius #Seeks #Court #Approval #Restructuring #Customer #Repayments
