{"id":84998,"date":"2023-09-26T11:04:18","date_gmt":"2023-09-26T08:04:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=84998"},"modified":"2025-09-12T20:42:16","modified_gmt":"2025-09-12T17:42:16","slug":"celsius-creditors-vote-for-restructuring-plan","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/celsius-creditors-vote-for-restructuring-plan\/","title":{"rendered":"Celsius creditors vote for restructuring plan"},"content":{"rendered":"

98% of Celsius creditors affected by the bankruptcy backed<\/a> the restructuring plan of the crypto-lending platform, under which they will recover part of their assets and receive a stake in the new company.<\/p>\n

Under the proposal, the debtors will allocate Bitcoin and Ethereum worth $2 billion. Celsius will also form a new public company called NewCo and transfer its shares to creditors.<\/p>\n

The adoption of the initiative marks the final stage of the platform’s bankruptcy process. Under the plan, customers can expect to recover 67-85% of their funds.<\/p>\n

\n

\u201cNewCo will oversee Bitcoin mining operations (which Celsius previously ran), participate in Ethereum-staking<\/a>, monetize other illiquid debtor assets and develop new, more profitable and regulatorily compliant business opportunities,\u201d the statement said.<\/p>\n<\/blockquote>\n

The management of the new firm has been entrusted to the Fahrenheit Group consortium. In May, the organization became the winner<\/a> of the bid for the assets of the bankrupt crypto-lending platform.<\/p>\n

Fahrenheit was formed by venture firms Arrington Capital and Proof Group, the mining company US Bitcoin Corp, and individual investors, including former Algorand CEO Stephen Kokinos and Ravi Kaza.<\/p>\n

Under the five-year agreement Fahrenheit will total $20 million<\/a> in annual compensation. US Bitcoin will receive $15 million for managing the mining business.<\/p>\n

The company will gain control of 121,800 ASIC miners. Once the devices are connected to the network, the firm\u2019s total hash rate will reach roughly 12.2 EH\/s.<\/p>\n

Interim Celsius chief executive Chris Ferraro said the company remains focused on \u201cdelivering the best outcomes\u201d for all participants and returning assets \u201cas quickly as possible.\u201d<\/p>\n

In June 2022 Celsius paused withdrawals<\/a>, exchanges and transfers between accounts due to extreme market conditions.<\/p>\n

After filing for bankruptcy<\/a>, the firm reported a $1.2 billion<\/a> hole in its balance sheet. In August it emerged that the company’s liabilities exceeded its assets by $2.85 billion<\/a>.<\/p>\n

In September the platform’s head Alex Mashinsky left<\/a> the post of CEO. In early 2023 the New York Attorney General charged<\/a> him with deceiving investors by billions of dollars.<\/p>\n

On July 13, the U.S. Department of Justice filed seven criminal charges<\/a> against the former Celsius chief. They include securities fraud, manipulation of the CEL token price and misleading investors.<\/p>\n

Subsequently the U.S. Federal Trade Commission announced<\/a> a settlement of claims against the company. The agreement calls for the platform to pay $4.7 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

98% of Celsius creditors affected by the bankruptcy backed the restructuring plan of the crypto-lending platform, under which they will recover part of their assets and receive a stake in the new company.<\/p>\n","protected":false},"author":1,"featured_media":84999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1348],"class_list":["post-84998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-celsius-network"],"aioseo_notices":[],"amp_enabled":true,"views":"9","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=84998"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84998\/revisions"}],"predecessor-version":[{"id":85000,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84998\/revisions\/85000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/84999"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=84998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=84998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=84998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}