Celsius Recovery Plan: Restarting As Bitcoin Miner With $450M Backing
- Celsius recovery plan is to repay customers with frozen funds by restarting as a Bitcoin miner.
- The company’s plan is backed by $450 million in capital from Fahrenheit LLC, led by Arrington Capital.
According to Bloomberg, Celsius recovery plan is to restart as a user-owned Bitcoin miner, but faces challenges in repaying frozen customer funds.
Celsius Recovery Plan With $450M Backing
The crypto lender Celsius Network has embarked on a bankruptcy trial with aspirations to restart as a user-owned Bitcoin miner. The company aims to release a portion of frozen customer funds, locked on the platform since June 2022, by the end of this year.
During a recent New York bankruptcy hearing, Celsius’s legal representative, Christopher S. Koenig, reportedly asserted that the restructured company, emerging from Chapter 11, will receive a substantial boost with $450 million in capital, and the financial backing comes from Fahrenheit LLC, a consortium spearheaded by Arrington Capital.
Challenges Ahead for Celsius’s Crypto Recovery
However, the path ahead is not without obstacles. Judge Martin Glenn is currently evaluating Celsius’s plan, which faces opposition from customers with frozen funds and Lantern Ventures affiliates, who argue that the new business has been overvalued.
Celsius’s repayment strategy involves distributing approximately $2 billion in Ethereum and Bitcoin and shares in the new entity. Customers would also gain a stake in legal actions against former executives, including co-founder and ex-CEO Alex Mashinsky, who faces fraud charges.
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