Yesterday, the US Bankruptcy Court for the Southern District of New York approved Celsius Network’s restructuring plans to shift its operations to Bitcoin mining. This comes after the crypto lender filed for Chapter 11 bankruptcy protection in July 2022.
Judge Martin Glenn of the US Bankruptcy Court gave the approval order on December 27. Overruling any objections, the ruling allows Celsius to move ahead with the plans, as a way to navigate away from the financial strain of the bankruptcy proceedings. The restructuring will also involve 8,500 miners hosted by US Bitcoin Corp, as announced in August.
Celsius customers who have participated in the lender’s custody program are now eligible to withdraw 72.5% of their crypto holdings, with a deadline set for February 28, 2024. This is part of the $225 million in crypto that was earmarked for business operations rejected by the SEC. Shares in the new mining company will also be available to customers.
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