Celsius Network’s bankruptcy plan has received the stamp of approval, marking a crucial step toward customers recovering their funds and acquiring shares in the new venture, NewCo.
Judge Martin Glenn has officially confirmed the plan, outlining the distribution of approximately $2 billion in Bitcoin and NewCo shares among the creditors. The anticipated commencement of reimbursements is set for year-end.
Notably, participants in Celsius’s Earn program—those who locked their CEL tokens for rewards—are included among the creditors.
It’s important to note that the judge’s approval does not categorize the Earn program as a security, a point that could potentially be contested by the SEC.
The prospective NewCo endeavors to expand Celsius’s mining operations and engage in other ventures, pending regulatory approval from bodies such as the SEC.
Under the management of the crypto-focused Fahrenheit consortium, spearheaded by entities like Proof Group, NewCo is gearing up for action and potential growth.