Celsius successor to be seeded with $450 million if restart plan approved

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By BitcoinWiki News

Key Takeaways:

– The prospective successor to bankrupt crypto lender Celsius plans to have no funded debt and seed funding of up to $450 million in cryptocurrency.
– The firm, known as “NewCo,” aims to repay customers whose funds were frozen by the end of this year.
– NewCo will be managed by investment consortium Fahrenheit, which has committed to investing up to $50 million as an equity stake.
– Debtors will distribute about $2 billion worth of bitcoin and ether to creditors.
– NewCo plans to be listed on Nasdaq for greater liquidity.
– The reorganization plan is currently being reviewed by Judge Martin Glenn and needs approval from securities regulators.
– The majority of creditors impacted by Celsius’ bankruptcy have voted in favor of the plan.
– If the court approves, it will be the first instance of a crypto platform’s revival post-bankruptcy.
– If the plan fails, Celsius may go into liquidation, resulting in lower recoveries for creditors.
– Celsius filed for bankruptcy protection in July last year, owing billions of dollars to investors.
– The collapsed crypto lender has faced scrutiny from multiple regulators, including the SEC, CFTC, and FTC.
– Celsius and former CEO Alex Mashinsky have been sued by the SEC for alleged fraudulent activities.
– The court hearing over the Chapter 11 plan is ongoing.


Prospective successor to bankrupt crypto lender Celsius, currently dubbed “NewCo,” has revealed its plan to restart the business with no funded debt and seed funding of up to $450 million in cryptocurrency. NewCo also plans to begin repaying customers whose funds were frozen after Celsius’s collapse by the end of this year. The investment consortium Fahrenheit will manage NewCo, with a commitment to invest up to $50 million as an equity stake in the new business. NewCo also plans to be listed on Nasdaq to maximize liquidity. The plan is currently awaiting court approval and needs to be cleared by securities regulators. If approved, this would be the first instance of a crypto platform’s revival post-bankruptcy. However, some customers still oppose the move. If the plan fails, Celsius may go into liquidation, which could result in lower recoveries for creditors. Celsius filed for bankruptcy in July 2022, owing billions of dollars to investors. It has also faced scrutiny from multiple regulators, including the SEC.

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