BTC-Newswire

Celsius Unveils Revival Strategy Backed By $450M Seed Funding

Press Releases Crypto News Bitcoinist Celsius Unveils Revival Strategy Backed By $450M Seed Funding

Celsius Network has commenced its bankruptcy trial as it seeks to relaunch itself as a user-owned Bitcoin miner. During a New York bankruptcy hearing, the company informed a judge that it intends to repay customers whose funds have been frozen on the platform since June 2022 with a portion of what they are owed by the end of the year.

According to a Bloomberg report, Celsius’s lawyer, Christopher S. Koenig, revealed that the restructured company, expected to emerge from Chapter 11, will receive $450 million in capital and financial backing.

A consortium called Fahrenheit LLC, led by Arrington Capital has been selected to manage the mining business and provide the required financial support. Koenig emphasized Fahrenheit’s belief in Celsius’s business: “They are putting their money where their mouth is.”

Celsius Seeks Redemption Through Chapter 11 Revival

Judge Martin Glenn is deliberating the approval of Celsius’s plan despite opposition from some customers who have been unable to access their funds.

Additionally, an affiliate of Lantern Ventures owed approximately $82 million, is challenging the plan because Celsius’s advisors have overvalued the new business. The new venture will also need clearance from securities regulators.

If approved, the plan would mark the first instance of a failed crypto platform being revived under Chapter 11 after a series of insolvencies rocked the industry last year.

However, in the event of the new company’s failure, the company may face liquidation, potentially resulting in lower repayments for customers.

Per the report, Celsius intends to partially repay creditors by distributing around $2 billion in Ethereum (ETH) and Bitcoin (BTC) and offering stock in the new company.

Customers will also receive a stake in litigation against co-found

Go to Source to See Full Article
Author: Ronaldo Marquez

Did you like this?
Tip BTC Newswire with Cryptocurrency