Crypto News– Celsius Network, the crypto lending platform, has initiated a bankruptcy trial with the intention of relaunching as a Bitcoin mining operation owned by its users. The company aims to release a portion of customer funds that have been locked on the platform since June 2022 by the end of this year.
Celsius Unveils Recovery Blueprint: Relaunching as a Bitcoin Miner with 450 Million Dollars Backing
During a recent bankruptcy hearing in New York, Christopher S. Koenig, Celsius’s legal representative, reportedly stated that the restructured company, emerging from Chapter 11 bankruptcy, is set to receive a significant injection of $450 million in capital. This financial support is being provided by Fahrenheit LLC, a consortium led by Arrington Capital.
Nonetheless, there are challenges ahead for Celsius’s crypto recovery plan. Judge Martin Glenn is presently assessing Celsius’s proposal, which faces opposition from customers who have had their funds frozen, as well as affiliates of Lantern Ventures. They argue that the new business has been overvalued.
Celsius’s repayment strategy involves distributing approximately $2 billion in Ethereum and Bitcoin, as well as shares in the new entity. Customers will also gain a stake in legal actions against former executives, including co-founder and former CEO Alex Mashinsky, who is facing fraud charges.