Creditors involved in the Celsius bankruptcy case voted in favor of a plan that will return the funds to them and distribute the capital through a new company.
According to a report dated September 25 presentation of the bankruptcy company Stretto, the majority of classes voted in favor of the plan with more than 98%.
Voting results are in! More than 95% of creditors of all eligible classes voted to accept the Plan, a testament to our collaborative efforts during Chapter 11. https://t.co/9Z5xlBhNts @CelsiusUcc @FahrenheitHldg.
- Celsius (@CelsiusNetwork) September 25, 2023
While voters have made a near-unanimous decision on the plan, the plan still needs final approval at a confirmation hearing in the United States Bankruptcy Court for the Southern District of New York scheduled for October 2.
According to a disclosure statement archived On August 17, the current plan will include approximately $2 billion in Bitcoin (btc) and ether (ETH) redistributed to Celsius Network's creditors. The plan will also distribute shares in a new company, temporarily called "NewCo."
"NewCo will operate and further develop the debtors' Bitcoin mining operations, stake Ethereum, monetize the debtors' other illiquid assets, and develop new business opportunities that accrete value and comply with regulations," he wrote.
In particular, the new company will managed by the Fahrenheit group โ a consortium of crypto-native individuals and organizations including former Algorand CEO Steven Kokinos, venture capital firm Arrington Capital, crypto miner US Bitcoin Corp, Proof Group Capital Management and Arrington Capital advisor Ravi Kaza .
Related: Celsius Creditors Point to New Phishing Attacks Ahead of Bankruptcy Plan
Celsius Network was one of the first major casualties of the 2022 bear market, with the Now Defunct Crypto Lender Filing for Bankruptcy on July 14, 2022.
On July 13, 2023, the SEC sued Celsius and its former CEO Alex Mashinsky for allegedly raising billions of dollars through fraudulent and unregistered offerings involving โcrypto asset securities.โ
Mashinsky was then arrested the same dayfollowing an indictment by the US Department of Justice, which accused the former CEO of fraudulent financial activity, deceiving investors and a host of other similar charges.
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