Most of the lenders to Celsius Network have given their approval for a plan to reimburse $2 billion worth of Bitcoin and Ethereum. As part of the Celsius bankruptcy proceedings creditors voted in favor of receiving their funds and also obtaining shares in a new company.
According to a report released by the bankruptcy agency, Stretto on September 25 than 98% of the creditor groups have accepted the proposed plan. However final confirmation from the US Bankruptcy Court in New Yorks Southern District is still pending with a hearing scheduled for October 2.
Based on documents disclosed on August 17 the proposed plan outlines the distribution of $2 billion worth of Bitcoin (valued at $26,345) and Ethereum (valued at $1,592) among Celsius Networks creditors. Additionally it suggests allocating shares in an established entity tentatively named “NewCo.”
This “NewCo” aims to expand existing Bitcoin mining operations hold stakes in Ethereum liquidate other assets owned by the Debtors involved in bankruptcy proceedings while also exploring new business opportunities that comply with regulatory requirements.
The management team responsible for overseeing this entity will be headed by individuals, from Fahrenheit Group consisting of experts specializing in cryptocurrencies and associated organizations.
The list includes individuals and organizations such as Steven Kokinos, who was previously the CEO of Algorand venture capitalist Arrington Capital, US Bitcoin Corp. A crypto mining enterprise, Proof Group Capital Management and Ravi Kaza an advisor for Arrington Capital.
The downfall of Celsius Network, during the phase of 2022 was a significant event. On July 14 2022 this prominent crypto lending platform declared bankruptcy.
A year later on July 13 2023 legal action was taken by the SEC against both Celsius and its former CEO Alex Mashinsky. The allegations were related to misleading offers of crypto asset securities that resulted in billions being illicitly amassed.
Consequently on the day Mashinsky was arrested based on charges brought forth by the U.S. Department of Justice. The accusations encompassed financial operations and misleading investors among various other related offenses.