Celsius Gets the Green Light!
In a move that many creditors have been waiting for, Judge Martin Glenn of the Southern District of New York Bankruptcy Court confirmed the Celsius bankruptcy plan on November 9. This follows an overwhelming approval from Celsius creditors on September 27, paving the way for funds to be returned and shares to be issued in the newly formed entity, aptly named NewCo.
The Moolah Breakdown
Approximately $2 billion worth of Bitcoin (BTC) and Ether (ETH) will be redistributed to the creditors. But don’t go rushing to your crypto wallets just yet; Celsius is expected to start the reimbursement process by the end of this year, assuming all goes smoothly. It’s like getting a surprise birthday gift—except it’s more of a “hey, remember that money we borrowed?” kind of gift.
Earn Program? What’s That?
For many, the journey began with the Celsius Earn program, which allowed users to earn weekly rewards by staking their locked CEL tokens. Notably, Judge Glenn made it clear that despite the program’s implications, nothing confirmed its status as a security. This is like saying, “Just because we have a cake doesn’t mean we’re having a party!”
Welcome to NewCo
NewCo isn’t just about returning funds. It’s set to expand mining operations and monetize illiquid assets from the old Celsius days. With the Fahrenheit consortium at the helm—comprised of various crypto-savvy entities—it’s safe to say they have a few tricks up their sleeves. It remains to be seen if they can turn the company’s previously icy reputation into something a bit warmer.
What About the Old Guard?
Celsius’s former CEO, Alex Mashinsky, is facing serious charges, including securities fraud, and his trial is slated for September 2024. Meanwhile, Roni Cohen-Pavon, the former chief revenue officer, has already pleaded guilty to fraud charges. If the Celsius saga was a Netflix series, this would definitely be a season finale kind of fiasco!
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