Celsius entity to focus only on mining under proposed reorganization plan

Share This Post

The lending firm has been in bankruptcy court since its Chapter 11 filing in 2022, while the SEC filed a lawsuit against both the firm and former CEO Alex Mashinsky in July.

Cryptocurrency lending firm Celsius said its reorganized company will focus only on Bitcoin mining following feedback from the United States Securities and Exchange Commission (SEC).

In a Nov. 20 announcement, Celsius said the core business of the ‘NewCo’ company proposed under its restructuring plan will be Bitcoin (BTC) mining rather than staking. The firm said it had reached the decision to focus its efforts on mining “based on the SEC’s feedback [and] in consultation with the Official Committee of Unsecured Creditors.”

Under the restructuring, Celsius said some of its assets which it previously proposed to transfer to an entity called ‘Fahrenheit NewCo’ would be retained by the firm’s estates. The company plans to have the ‘Mining NewCo’ entity publicly traded in the United States and owned by Celsius customers.

“In the coming weeks, the Debtors intend to file a motion with the Bankruptcy Court to approve modifications to the Plan to reflect the new Mining NewCo transaction,” said Celsius. “The Debtors do not believe that these modifications will require resolicitation of the Plan. The Debtors still anticipate that distributions to creditors will commence in January of 2024.”

Related: Court confirms Celsius bankruptcy exit plan, $2B in crypto to go to creditors

Celsius filed for Chapter 11 protection in U.S. Bankruptcy Court for the Southern District of New York in July 2022 following a pause in withdrawals at the platform. In July 2023, the SEC filed a lawsuit against Celsius and Alex Mashinsky, alleging the former CEO falsely promised a safe investment through the firm’s Earn Interest Program.

Authorities with the U.S. Justice Department arrested Mashinsky in July, charging the former Celsius CEO with securities fraud, commodities fraud and wire fraud related to allegedly defrauding customers. At the time of publication, Mashinsky remains free on $40 million bail through his trial scheduled to begin in September 2024.

Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

HTX DAO Launches Recruitment for New Governance Committee Members to Foster Sustainable Development

PRESS RELEASE To further advance the decentralized governance process, HTX DAO is now launching a global recruitment program for its new governance committee They are seeking highly qualified

Hong Kong’s ZA Bank Launches Crypto Trading: First Asian Bank to Offer Bitcoin & Ethereum!

The post Hong Kong’s ZA Bank Launches Crypto Trading: First Asian Bank to Offer Bitcoin & Ethereum! appeared first on Coinpedia Fintech News Zhong An Bank (ZA Bank), a digital bank based in

5 Best Cheap Cryptos to Invest Now Under 1 Dollar – Notcoin, Decentraland, Catslap

The cryptocurrency market is experiencing significant activity as Bitcoin edges closer to the $100,000 milestone Historically, a rise in Bitcoin’s price has often sparked gains

Ripple Teams Up with Archax and ABRDN PLC for First Tokenized Fund on XRP Ledger!

The post Ripple Teams Up with Archax and ABRDN PLC for First Tokenized Fund on XRP Ledger! appeared first on Coinpedia Fintech News Ripple has teamed up with Archax, a UK-based FCA-regulated digital

Solana Price Prediction 2024, 2025-2030: SOL Price Hits New ATH, Target $500?

The post Solana Price Prediction 2024, 2025-2030: SOL Price Hits New ATH, Target $500 appeared first on Coinpedia Fintech News Story Highlights The live price of Solana crypto is Solana price could

Cardano Price Prediction 2024, 2025-2030: Will ADA Price Hit $1?

The post Cardano Price Prediction 2024, 2025-2030: Will ADA Price Hit $1 appeared first on Coinpedia Fintech News Story Highlights The live price of the Cardano token is ADA coin price could reach a