Celsius Bankruptcy Plan Approved: Customers to Regain Funds and Shares in NewCo

Celsius Bankruptcy Plan Gets the Green Light

In a plot twist that feels like a finance-driven soap opera, Judge Martin Glenn from the Southern District of New York Bankruptcy Court announced on November 9 that the bankruptcy plan for Celsius was officially approved. It’s not just any approval either; this was overwhelmingly supported by Celsius creditors back on September 27th. The stars have aligned (or at least the creditors approved) for a brighter financial future for those who had funds tied up in the infamous Celsius.

Distribution Details: What’s in Store for Creditors?

Under the newly approved plan, creditors are poised to see a promising return of around $2 billion in Bitcoin (BTC) and Ether (ETH). As a cherry on top, they’ll also receive equity in what’s being dubbed the “NewCo.” Yes, that’s right, folks – you might become a shareholder in a revitalized version of Celsius. The company is aiming to kick off reimbursements before the year ends, so mark your calendars (but not too hastily; you know how these things go).

CEL Token Drama: The Court Speaks

Interestingly, many creditors were part of Celsius’s Earn program, which was, let’s say, a rather curious ride. This program allowed users to earn weekly rewards by holding CEL tokens that were, to put it mildly, locked for a year. Judge Glenn, in his oh-so-eloquent fashion, reminded everyone that this confirmation doesn’t classify CEL tokens or the Earn program under any securities laws. In simpler terms, no securities status here, folks!

Meet NewCo: The Future of Celsius?

So, what’s on the docket for NewCo, you ask? The revamped entity will take over Celsius’s existing mining operations and will dip its fingers in monetizing some of those less liquid assets as well. Of course, all of this exciting work will have to pass through the regulatory gauntlet, because when have regulations ever kept a startup down?

Celsius’s Rollercoaster Ride: A Brief Recap

For those who missed the drama, Celsius declared bankruptcy back in July 2022, and its former CEO, Alex Mashinsky, was arrested last July on serious charges that sound like they were ripped straight from a crime novel: securities fraud, commodities fraud, and wire fraud. He is set for trial in September 2024. Meanwhile, ex-chief revenue officer Roni Cohen-Pavon admitted guilt to charges of fraud and price manipulation, with his sentencing looming on December 11.

This saga isn’t over yet, but at least there’s a glimmer of hope for creditors as they await their refunds and a share in the NewCo future. Stay tuned, folks – this rollercoaster isn’t over yet!