Court confirms Celsius bankruptcy exit plan, $2B in crypto to go to creditors
The decision ends the complex case with a creditor-approved plan that will see their partial reimbursement and make them shareholders in a new company.
The Celsius bankruptcy plan has been approved. The path is now clear for customers to see some of their funds returned and receive shares in the reorganized company, which will be called NewCo.
Judge Martin Glenn of the Southern District of New York Bankruptcy Court issued a confirmation on Nov. 9 of the bankruptcy plan approved by Celsius creditors overwhelmingly on Sept. 27. Under the plan, around $2 billion in Bitcoin (BTC) and Ether (ETH) will be redistributed to Celsius creditors along with equity in NewCo. The company has said it hoped to begin reimbursement of creditors by the end of the year.
Many of the Celsius creditors were participants in its Earn program, allowing them to earn weekly rewards by holding CEL token that were locked for a year. Judge Glenn wrote in his decision:
“Nothing in this Confirmation Order or the Plan constitutes a finding of the Court under any securities laws or otherwise as to whether CEL Token or the Earn Program are securities.”
The United States Securities and Exchange Commission has claimed similar programs are securities.
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