Failed Crypto Lender Celsius To Create New Company for Creditors as US Judge Approves Bankruptcy Plan
A US judge has approved a bankruptcy plan for a crypto lender that filed for bankruptcy in July 2022 after its token plummeted by 99% and it was unable to fulfill withdrawals.
According to a recent court filing, the new plan from Celsius Network will generate funds for a new mining and staking corporate spinoff designed to repay creditors.
The company, dubbed “NewCo,” will have a $1.25 billion balance sheet, $450 million of which will be liquid crypto.
Explains bankruptcy judge Martin Glenn,
“NewCo intends to stake some or all of this liquid cryptocurrency to earn staking yields on the Ethereum network, which would generate anywhere from $10 to $20 million per year.”
The mining portion of the business has projected 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $61.8 million, according to Glenn.
NewCo will be owned by customers but managed by a collection of companies under the name Fahrenheit LLC.
The judge also notes that nothing in his order constitutes a finding under federal securities laws determining whether or not crypto tokens or transactions are securities.
“The right of the U.S. Securities and Exchange Commission to challenge transactions involving crypto tokens on any basis is expressly reserved.”
Celsius Network’s native token, CEL, is trading at $0.262 at time of writing. The 275th-ranked crypto asset by market cap is up nearly 5% in the past 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Failed Crypto Lender Celsius To Create New Company for Creditors as US Judge Approves Bankruptcy Plan appeared first on The Daily Hodl.
Go to Source
Author: Conor Devitt
