Celsius Moves Forward with Settlement Plan Amid Bankruptcy

Celsius Settlement Plan Approval

Bankrupt crypto lender Celsius has received approval to initiate a customer voting process on a proposed settlement plan. This significant development comes as part of Celsius' bankruptcy proceedings in the Southern District of New York.

Proposed Acquisition and New Company Launch

The settlement plan involves a consortium called Fahrenheit, which aims to purchase Celsius' assets. Following the acquisition, Fahrenheit plans to establish a new company. This new entity will be responsible for distributing Celsius' remaining assets and providing equity to its customers, offering a potential path forward for those affected by the bankruptcy.

Enhanced Recoveries for Customers

A key element of the settlement plan is the proposed increase in customer recoveries. The plan outlines a 5% boost in recoveries for participants in Celsius’ Earn program. This increase is designed to address claims of fraud and misrepresentation by Celsius management, aiming to provide a fairer resolution for impacted customers.

Court Approval and Customer Voting

Judge Martin Glenn of the Southern District of New York bankruptcy court has approved the motion for Celsius customers to vote on this settlement. The approval marks a pivotal moment in the bankruptcy proceedings, allowing customers to weigh in on the proposed resolution.

Moving Forward

The voting process represents a crucial step in Celsius' efforts to resolve its bankruptcy issues and provide compensation to its customers. As the situation unfolds, stakeholders will be closely monitoring the outcomes and potential implications for the crypto lender's future.