The post Celsius Changes Name to NewCo, Creditors Get Shares, $2B in Crypto appeared on BitcoinEthereumNews.com.

Celsius bankruptcy plan approved as judge confirms celsius bankruptcy exit The plan allows Celsius to distribute approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) and some shares of the new company to users who were unable to withdraw their funds  Celsius’s bankruptcy plan has been approved. Customers can now expect to see some of their assets returned and receive shares in the reformed company, which will be known as NewCo. The Celsius insolvency case, which began last year, has taken a big step ahead with the approval of the company’s reorganization plan by the US Bankruptcy Court for the Southern District of New York. On November 9th, Judge Martin Glenn approved the motion of the dissolved crypto business, which was also backed by numerous creditors. Celsius Network declared bankruptcy in 2022 after months of suffering with liquidity challenges. The biggest issue arose with the Luna crash, which harmed numerous crypto firms. Many consumers withdrew their monies because of fear of losing them, placing the company in jeopardy and forcing it to declare bankruptcy within two weeks of the crisis. Its entire assets and liabilities were believed to be between $1 million and $10 million, with over 100,000 creditors. Celsius Bankruptcy: The Plan to Address the Situation The approved plan allows Celsius to distribute approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) and some shares of the new company to users who were unable to withdraw their funds when the company stopped accepting withdrawal requests, many of whom were participants in the Celsius Earn program, which paid them a set amount as a reward for depositing their cryptos.  Read Also: Celsius Cleared To Exit Bankruptcy And Reopens As A Mining Business Although the Securities and Exchange Commission claims that such systems are subject to securities regulation since…

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Filed under: News - @ November 10, 2023 11:18 pm