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Celsius creditors vote in favor of reorganization plan

– The creditors in the Celsius bankruptcy case have voted in favor of a plan that will return funds to them and distribute equity through a new company.
– Most of the voting classes supported the plan by over 98%.
– The plan still requires final approval at a confirmation hearing in the United States Bankruptcy Court for the Southern District of New York on October 2.
– The current plan will redistribute approximately $2 billion worth of Bitcoin (BTC) and Ether (ETH) to Celsius Network creditors.
– It will also distribute equity in a new company temporarily known as “NewCo”.
– The new company will be managed by the Fahrenheit Group, a consortium of crypto-native individuals and organizations.
– Celsius Network was one of the first casualties of the 2022 bear market and filed for bankruptcy on July 14, 2022.
– The SEC sued Celsius and its former CEO Alex Mashinsky on July 13, 2023, for allegedly raising billions of dollars through unregistered and fraudulent offers involving crypto asset securities.
– Mashinsky was arrested on the same day following an indictment from the U.S. Department of Justice for fraudulent financial activity.

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