Celsius Network, a crypto platform that once claimed to be safer than a bank, has received court approval to settle its bankruptcy case and return most of the remaining cryptocurrencies to its numerous customers.
These customers have been unable to access their funds since last year.
The approval granted today by the New York bankruptcy court also paves the way for the establishment of a new company focused on Celsius' crypto mining and staking activities. Thus, Celsius' bankruptcy process comes to an end.
Under the approved plan, former Celsius customers will receive a mix of cryptocurrency holdings and shares in the new venture. If all goes as planned, the new venture will be publicly listed.
However, first the U.S. Securities and Exchange Commission (SEC) must approve the listing, and the agency will have the opportunity to “object” any crypto asset transaction they deem to involve securities.
US bankruptcy judge Martin Glenn called on the SEC to make a quick decision.
This approval could mark the end of a long process for Celsius and its creditors. In August, the debtor company sent its plan to creditors, some of whom opposed it, but the official committee representing small creditors approved the application.
In July 2023, the US Department of Justice charged former Celsius CEO Alexander Mashinsky with fraud and manipulation related to his role at the company, a year after the company filed for bankruptcy. Mashinsky has pleaded not guilty to all charges and his jury trial is scheduled for September 2024 in the Southern District of New York.
*This is not investment advice.
