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 <p>US Bankruptcy Judge Martin Glenn said that he would start sending ballots to <a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a> account holders along with the voting materials having clear language explanations of the company’s plans to repay customers.</p>  
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 <p>However, Judge Glenn said that he would give the approval after <a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a>’s advisers provide additional information regarding the volatility of the crypto industry. He also asks about any difficulties that might affect the company’s crypto-mining activities.</p> 
 <p>Interestingly, some creditors have already challenged the repayment plans while other customers have objected to them.</p> 
 <h3 id="celsius-networks-repayment-plan">Celsius Networks’ Repayment Plan</h3> 
 <p>The bankrupt crypto lender has put forth a repayment plan under the leadership of investment firm Arrington Capital. A consortium named Fahrenheit LLC, which successfully acquired the crypto lender’s assets through a bankruptcy auction earlier this year, is leading the proposal.</p>  
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 <p>Customers will receive partial repayment through ownership in the new entity, which will manage Celsius’ mining activities and take over responsibilities like institutional loans and investments, including $500 million in liquid cryptocurrencies.</p>  
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 <p>As per court documents, a committee representing Celsius account holders and other creditors mentioned that if the Fahrenheit deal is finalized, retail borrowers might recover over 85 cents per dollar. The new company will have strong financial backing and no substantial debt, becoming the first publicly-listed firm with notable holdings in both Bitcoin and Ethereum. Additionally, the plan outlines the distribution of around $2 billion worth of crypto tokens to creditors.</p> 
 <p><a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a> lawyer Chris Koenig said that the company is on track to start repaying its customers by the end of 2023. But Judge Glenn said that there’s still a lot of work pending in this case.</p> 
 <h3 id="celsius-creditors-object">Celsius Creditors Object</h3> 
 <p>During a hearing, <a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a> account holders expressed their unhappiness with the company’s repayment strategy, reports Bloomberg. They are hesitant to receive shares in a new and uncertain project. A few customers also want <a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a> to give them back their CEL tokens. They disagree with the company’s idea of considering each CEL token worth 25 cents.</p> 
 <p>However, Judge Glenn stated that Celsius account holders won’t get the CEL tokens. The Securities and Exchange Commission has claimed that Celsius and its former CEO thought of CEL tokens as similar to stocks in a public company. Usually, these stocks lose value in a situation like Chapter 11 bankruptcy. Judge Glenn explained that CEL tokens can’t be given out because they depended on Celsius’ value. He also added that after the Chapter 11 bankruptcy case conclusion, Celsius won’t exist anymore.</p> 
 <p>Last month, federal prosecutors charged <a rel="noopener noreferrer nofollow" title="Celsius" href="https://thebittimes.com/tag/celsius.html">Celsius</a> CEO Alex Mashinsky with fraud and accused him of manipulating CEL’s value and inflating it artificially.</p> 
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Bankrupt Celsius Networks to Repay Customers Via New Company

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