Celsius seeks Approval to Launch New Company Under Creditor Ownership

The once-prominent cryptocurrency lending platform Celsius Network, which had previously filed for bankruptcy, is now pursuing an innovative route to recovery.  According to reports, the organization, known for its services in lending and interest-earning, is seeking court approval to launch a new entity owned by its creditors. 

The cryptocurrency lending platform intends to establish a new company owned by creditors and distribute approximately $2 billion in Bitcoin and Ethereum. The bankruptcy court granted permission for the plan to proceed with the customer vote, and it was approved. This strategic move aims to address financial challenges and may also pave the way for a new beginning for both the platform and its users.

US bankruptcy judge Martin Glenn has also permitted Celsius to start sending voting materials to account holders, outlining the company’s repayment plan for customers. As soon as they get the green light, cryptocurrency lenders will begin sending out ballots to account holders. After receiving further input from the company’s advisors regarding the crypto industry’s volatility and potential challenges to Celsius’ crypto mining operation, Glenn stated that his approval would be conditional.

Investment firm Arrington Capital, a member of the Fahrenheit LLC consortium that won the bankruptcy auction for the lending platform’s assets earlier this year, is proposing this new beginning for Celsius.

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