CRYPTO UPDATE: Celsius Network Obtains Court Approval of Chapter 11 Plan

Nov 14, 2023
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By: Michael L. Moskowitz, Esq. and Melissa A. Guseynov, Esq.

Previously we reported on the Celsius Network (“Celsius”) chapter 11 bankruptcy case and the auction sale of its assets. More than one year ago, Celsius and its affiliates filed for bankruptcy relief in the United States Bankruptcy Court for the Southern District of New York. 

In May of this year, Celsius announced its month-long auction concluded after multiple rounds of bidding, with Fahrenheit LLC (“Fahrenheit”) selected as the successful bidder. As a result, Celsius was able to confirm its chapter 11 plan, with certain modifications to resolve specific objections. The confirmed plan incorporated a deal, supported by the Creditors’ Committee, which valued Celsius' tokens at $0.25 per token. Most token claims will be allowed at that price. Notably, customer accounts will continue under a Fahrenheit platform, whereby customers will receive a pro rata distribution of digital assets and will be free to pull or keep the digital assets there. Bankruptcy Judge Glenn had earlier issued a decision holding that digital assets deposited by customers using the Celsius platform as collateral for loans constitute property of the estate.

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