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Among the recent events in the ever-evolving crypto space include the news on Celsius Network, a&nbsp; crypto lending platform that intends to implement its plans on a restructuring intent. These plans will also return digital currencies to customers and create the Celsius creditors company.&nbsp;
The court signed off and confirmed the firm <a href="https://www.bnnbloomberg.ca/failed-crypto-lender-celsius-network-cleared-to-exit-bankruptcy-1.1996462" rel="noopener noreferrer nofollow" target="_blank">exit</a> and restructuring plans that seek to allocate billions worth of crypto to creditors. This incident adds to a list of crypto firms that have declared bankruptcy over the past years, including the FTX crypto exchange that Sam Bankman-Fried led.&nbsp;
<h2 class="wp-block-heading" id="celsius-bankruptcy-exit-plan-greenlighted-by-a-us-court">Celsius bankruptcy exit plan greenlighted by a US court</h2>
Martin Glenn, the US Bankruptcy Manhattan Judge, signed off on the Celsius restructuring appeal published on Thursday. Fahrenheit LLC will lead the new business as manager. This is a group of companies that are inclusive of hedge fund Arrington Capital. They intend to shift full focus to Bitcoin mining and gain returns from staking fees earned by validating blockchain traditions.&nbsp;
Prior to this recent news, the entity had initially filed for protection claims in July last year, as stated in Chapter 11. This was a month after freezing its creditor accounts and preventing withdrawal features.&nbsp;
The firm stood among the most valued crypto lending platforms, collapsed in 2022 but was valued at $3 billion before that. The new restructuring move intends to create the NewCo platform and return over $2 billion in crypto to account holders.&nbsp;
Reported on November 9, the news also stated that Fahrenheit would purchase a minority stake in <a href="https://twitter.com/CelsiusNewCo/status/1721659235937730705?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1721659235937730705%7Ctwgr%5Ed85aa0789cd679c46d55c2290df0fe94738fbbe0%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcourt-confirms-celsius-bankruptcy-exit-plan-2-billion-crypto-creditors" rel="noopener noreferrer nofollow" target="_blank">Celsius</a> worth $50 million. Fahrenheit consortium is made up of native persons, including Proof Group, among other organizations and people.&nbsp;
The new company stock will also be listed in Nasdaq, and this will allow customers to exchange equity shares, which will be part of their bankruptcy settlement.&nbsp;
Celsius has over 500,000 customers holding over $4.4 billion in interest-bearing Celsius accounts before filing its bankruptcy. The retribution plan intends to include Bitcoin (BTC) and Ethereum <a href="https://www.cryptopolitan.com/ethereum-soars-amid-blackrock-etf-filing/" rel="noopener noreferrer nofollow">(ETH)</a> with the NewCo equity.&nbsp;
Most Celsius creditors are participants in an earning program that allows them to revise weekly rewards from holding CEL tokens locked up for a year by the firm. The creditor’s reimbursement is set to commence by the end of 2023. The <a href="https://www.cryptopolitan.com/ethereum-etf-confirmed-in-a-nasdaq-filing/" rel="noopener noreferrer nofollow">tokens</a> will be sold at 25 cents.&nbsp;
Judge Glenn highlighted his decision and noted:
&nbsp;“Nothing in this Confirmation Order or the Plan constitutes a finding of the Court under any securities laws or otherwise as to whether CEL Token or the Earn Program are securities.” Judge Glenn
Additionally, the US Securities and Exchange Commission (SEC) has claimed that such digital assets fall under Securities.&nbsp;
<h2 class="wp-block-heading" id="celsius-expands-to-newco">Celsius expands to NewCo&nbsp;</h2>
NewCo is set to expand the mining activities of the Celsius crypto lender, monetize illiquid Celsius assets, and embark on other developments that are pending regulatory approval.&nbsp;
Celsius’ former CEO, Alex Mashinsky, was arrested in mid-2023 on security fraud, wire fraud, and commodities fraud charges. Prior to this, the company had filed for bankruptcy in 2022. The former CEO is expected to begin trial in September 2024 but is currently free on a $40 million bail.&nbsp;
In the same case, Roni Cohen-Pavon, Celsius’s Chief Revenue Officer, pleaded guilty to price manipulation and fraud charges and is set for a sentencing hearing on December 11, 2023.&nbsp;
Celsius was initially charged with inflating the value of its CEL token in order to benefit company insiders. Their staff noted this as a very “Ponzi-like” endeavor. The company now pursues litigation for its CEO Mashinsky, who was charged with a civil lawsuit on allegations of misleading customers but pleaded not guilty.&nbsp;

Celsius bankruptcy $2 billion exit plan confirmed by court

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