The creditors of Celsius, a crypto lending company that went bankrupt, have voted for a plan that will pay them back in bitcoin, ether, and shares of a new entity called "NewCo". The plan received more than 98 percent approval from most classes of creditors.
However, the payment is not final yet. It still needs the approval of the US Bankruptcy Court for the Southern District of New York. The court will hold a hearing on October 2 to decide on the plan.
Some creditors did not like the plan. They did not want to get shares of a new and unproven company. They also wanted to get back their CEL tokens, which were the native currency of Celsius. But the court said that was not possible because of legal and financial issues.
NewCo will be managed by the Fahrenheit Group, a group that bought Celsius' assets earlier this year. The group plans to expand its Bitcoin mining operations and offer new and compliant business opportunities in the crypto space.
Celsius was accused of fraud, illegal sales, and price manipulation of its CEL token. It was one of the major players in the crypto lending industry, but it collapsed because of these allegations. Its bankruptcy is a warning for the crypto world. The plan offers some hope to the creditors, but it is not the end of the story. The court hearing will determine what will happen to the billions of assets and the future of NewCo.
