Celsius applies to court to start repaying client funds before year-end

According to Cointelegraph, crypto lending company Celsius Network told a judge at a hearing seeking approval of its restructuring plan on October 2 that the company plans to start repaying customers before the end of the year. Celsius' legal counsel Christopher Koenig said in opening statements that the new company, called "NewCo," will receive $450 million in seed funding from the proceedings. Additionally, a September 29 filing revealed that Celsius plans to use $2.03 billion in Bitcoin and Ethereum, as well as shares in the new company, to partially repay creditors.

The judge presiding over the case is considering whether to approve Celsius' reorganization plan. The plan also requires approval from safety regulators. According to reports, although the restructuring plan received support from most creditors and was passed, it was still opposed by some creditors.