Business News Report
September 26, 2023

Celsius Inches Closer to Bankruptcy Exit as Over 98% of Creditors Approve Reorganization

Celsius is setting the stage for the company’s bankruptcy exit. Recently, its creditors voted in favor of a reorganization plan presented by the beleaguered crypto lender. The plan proposed offers a return of 67%-85% of holdings to creditors, marking a significant milestone in resolving the financial turmoil that befell Celsius.

Despite an overwhelming majority of more than 98% creditors voting in favor, the plan hasn’t been without its objections. Notably, the U.S. Trustee has expressed reservations, showcasing the complexities involved in the crypto lender’s bankruptcy proceedings.

The U.S. Bankruptcy Court for the Southern District of New York has scheduled a critical confirmation hearing for October 2, where they will deliberate the plan’s final approval.

Asset Sale to Celsius Holdings

Part of the proposed reorganization involves the sale of assets to the crypto consortium, Holdings, encompassing entities like Arrington Capital and U.S. Bitcoin Corp. Winning the bid to acquire the insolvent lender in May 2023, Fahrenheit Holdings stands as a beacon of hope for a streamlined resolution to the bankruptcy.

This vote signifies a pivotal move towards closing the tumultuous chapter of Celsius’ bankruptcy.

The company had declared bankruptcy in July of the preceding year amid a crypto winter. The resignation of its Chief Executive Officer, Alex Mashinsky, in September 2022, added to the organization’s woes. Further complications arose with Mashinsky’s arrest on fraud charges in July 2023, which he has steadfastly denied.

Settlement and Asset Freeze

Despite facing accusations, Celsius confirmed its dedication to reorganization plans. This commitment came after a substantial $4.7 billion settlement with U.S. authorities over fraud allegations. Although released on a $40 million bond, Alex Mashinsky faces a freeze on his banking and real estate assets. Recent court orders highlight the ongoing legal challenges amid the bankruptcy resolution.

These events mark significant steps towards Celsius’s financial stabilization. They highlight the complex challenges and solutions in navigating bankruptcy within the cryptocurrency space. The journey showcases the intricacy involved in resolving such significant legal and financial issues in this emerging field.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

NFTs & Mining: A Digital Synergy

The rise in usage of the non-fungible tokens has changed the way we see and engage with ...

Know More

AI in Crypto

Explore the ever-evolving realm of artificial intelligence within the cryptocurrency sphere. Discover the transformative impact of AI ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Figure Raises $675M Funding for Humanoid Robot Development, Collaborates with OpenAI for AI Model Research
Business News Report
Figure Raises $675M Funding for Humanoid Robot Development, Collaborates with OpenAI for AI Model Research
February 29, 2024
Telegram Plans to Sell TON at Discount to Long-Term Investors, Limiting Token Holdings to 10%
News Report Technology
Telegram Plans to Sell TON at Discount to Long-Term Investors, Limiting Token Holdings to 10%
February 29, 2024
How Icertis Leveraged Generative AI Copilots for a $250M Revenue Boost
Opinion Business
How Icertis Leveraged Generative AI Copilots for a $250M Revenue Boost
February 29, 2024
FTX-Linked Crypto Hedge Fund Rebrands to MNNC Group, Attracts “Mid-Eight-Figure” Investment Post-FTX Collapse
Business News Report
FTX-Linked Crypto Hedge Fund Rebrands to MNNC Group, Attracts “Mid-Eight-Figure” Investment Post-FTX Collapse
February 29, 2024
What You
Need to Know

Subscribe To Our Newsletter.
Daily search marketing tidbits for savvy pros.