Voting Overwhelmingly in Favor
In a remarkable show of unity, creditors of the Celsius Network have made their voices heard in the ongoing bankruptcy saga. A whopping 95% of eligible creditors cast their votes in favor of a new plan for fund distributions and equity creation. According to a recent update from the bankruptcy firm Stretto, the results are clear: over 98% of classes supporting the plan is no small feat!
Next Steps: The Confirmation Hearing
Despite this soaring approval rate, the real challenge lies ahead. The plan still requires final approval during a confirmation hearing at the United States Bankruptcy Court for the Southern District of New York, set for October 2.
What’s in Store for Creditors?
So, what exactly does this plan entail? According to disclosures from August 17, creditors are expected to see approximately $2 billion worth of Bitcoin (BTC) and Ether (ETH) redistributing back into their wallets. Additionally, they’ll receive stakes in a new company, temporarily dubbed “NewCo.” Sounds like a great holiday gift, right?
Introducing NewCo: A New Dawn
“NewCo” isn’t just another tech start-up – it’s got aspirations! The company aims to take the reins on Celsius’ former mining operations, stake Ethereum, and explore various regulatory-compliant business ventures designed for wealth creation. It’s managed by the Fahrenheit Group, a consortium of crypto enthusiasts and professionals, including notable figures like former Algorand CEO Steven Kokinos and others from the venture capital and mining sectors.
A Cautionary Tale
However, the cloud of caution still looms overhead, especially considering the tumultuous past of Celsius. The platform fell from grace in the face of the 2022 bear market, leading to its bankruptcy filing on July 14, 2022. To add salt to the wound, former CEO Alex Mashinsky faces serious legal troubles following allegations of fraudulent activities that raised billions through unregistered offers. Talk about a reality show!
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