TechFlow reported, according to Bloomberg, that a U.S. bankruptcy court has approved the plan for cryptocurrency lending firm Celsius Network LLC to transform into a creditor-owned Bitcoin mining company. As part of a broader proposal to repay customers whose accounts have been frozen for over a year, approximately $2 billion worth of Bitcoin and Ethereum will be redistributed alongside equity in NewCo to Celsius creditors. Celsius' attorneys said the platform may begin asset distributions early next year.
Under the plan, a new company will build out mining and staking operations managed by Fahrenheit Group, which successfully acquired Celsius’ assets through a May auction.
The transformation plan still requires approval from the SEC. If all goes as planned, the new company will become publicly listed. Should the cryptocurrency mining transformation proposal fail, Celsius may instead proceed with liquidation. The judge urged the SEC to promptly decide on Celsius’ restructuring plan.
