On November 9, Judge Martin Glenn from the Southern District of New York Bankruptcy Court officially approved the plan, which had gained significant support from Celsius creditors back on September 27. This green light for Celsius' bankruptcy plan marks a crucial step, offering creditors the chance to recover funds and acquire shares in the restructured entity, known as NewCo.

Under the endorsed plan, approximately $2 billion in Bitcoin and Ethereum will be distributed to Celsius creditors, along with equity in NewCo. The company aims to kickstart creditor reimbursements by the end of the current year.

A substantial number of creditors participated in Celsius' Earn program, earning weekly rewards by holding locked CEL tokens. Judge Glenn clarified in his decision that the confirmation order doesn't determine whether CEL Token or the Earn Program qualifies as securities, addressing concerns raised by the U.S. Securities and Exchange Commission (SEC).

NewCo, overseen by the Fahrenheit consortium, consisting of various crypto-native entities, plans to expand Celsius' previous mining operations, monetize illiquid assets, and pursue other developmental initiatives, pending regulatory approval. The bankruptcy and restructuring process followed Celsius filing for bankruptcy in July 2022, with former CEO Alex Mashinsky facing charges of securities fraud, commodities fraud, and wire fraud. Mashinsky's trial is scheduled for September 2024, while former Chief Revenue Officer Roni Cohen-Pavon has pleaded guilty to fraud charges and awaits sentencing on December 1.