Celsius Network Seeks Approval for Customer Repayment by Year-End

Celsius Network seeks court approval for restructuring plan, $2.03bn repayment, and NewCo launch amid regulatory scrutiny.
Celsius Network Seeks Approval for Customer Repayment by Year-End
Celsius Network Seeks Approval for Customer Repayment by Year-End

In order to undertake a restructuring plan and pay its clients and creditors by the end of 2023, struggling cryptocurrency lending platform Celsius Network is asking the court for permission. With $450 million in cryptocurrencies to be utilized for mining and staking, Fahrenheit LLC wants to establish “NewCo.”

Celsius intends to partially settle its debtors using $2.03 billion in Bitcoin, Ether, and NewCo shares. The strategy is being evaluated by the court as it waits for regulatory approval. While some creditors do not, there are some that do.

If approved, this will probably be one of the first Chapter 11 bankruptcy reorganizations of a failed crypto platform in 2022. Celsius stopped making withdrawals in June 2022 as a result of the issues with the Terra ecosystem.

Fahrenheit LLC is expected to invest $50 million in NewCo, and the company plans to refund client cash by the end of the year. To increase liquidity, they plan to list on the Nasdaq.

However, the court’s and the regulatory’s approval is necessary for it to succeed in the face of customer opposition. In the event that Celsius failed, it would be liquidated, which would result in the creditor obtaining fewer credits.

The business has faced some financial and legal troubles, including SEC charges over alleged fraud against the business and its previous CEO. These changes have significant ramifications for the cryptocurrency market and its investors.

More From The Kangaroo Times

Total
0
Shares
Related Posts
Total
0
Share