Posted: December 29, 2023 5:00 AM Updated: December 29, 2023 5:02 AM
Correction and fact check date: December 29, 2023, 5:00 AM
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Celsius Network has received approval from a U.S. Bankruptcy Court judge for its plan to transition to Bitcoin mining.
Cryptocurrency lending company Celsius Network has received approval from U.S. Bankruptcy Judge Martin Glenn for its plans to transition into Bitcoin mining. The company has been allowed to depart from its originally approved insolvency plan after indicating that the new reorganization did not worsen the situation for its creditors and customers.
The judge specified that Chelsea’s additional cryptocurrency would be returned to customers, who would also be granted shares in the upcoming Bitcoin mining company.
Celsius has announced plans to launch a new publicly traded Bitcoin mining company. Additionally, there are plans to enhance the distribution of liquid cryptocurrencies to account holders as Celsius is expected to emerge from bankruptcy in early 2024.
Celsius’ revised bankruptcy plan also disclosed $225 million in cryptocurrency assets that were initially allocated to new business lines, which were rejected following a decision by the U.S. Securities and Exchange Commission (SEC). As a result, larger amounts of Chelsea cryptocurrency will be returned to customers, along with equity stakes in new Bitcoin mining operations.
Celsius Network resolves bankruptcy
In July 2022, Celsius filed for Chapter 11 protection, joining several cryptocurrency lenders facing bankruptcy as the industry expanded rapidly during the COVID-19 pandemic. Chelsea previously scaled back its broader goals to earn commissions by verifying cryptocurrency transactions and launching a new business line.
This change comes after the SEC rejected the initial plan. As a result, Celsius withdrew from working with selected external bidders, leaving mining company US Bitcoin Corp in charge of overseeing the new creditor-owned mining operation.
In light of its transition to authorized Bitcoin mining and its revised bankruptcy plan, Chelsea Network’s strategic moves represent a positive development that marks the company’s progress out of bankruptcy.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles