The ghosts of 2022 had struck down many along with Celsius, which has now emerged from bankruptcy and begun distributing $3 billion in cryptocurrency and fiat to its creditors.
On Nov. 9, crypto lender Celsius received approval from a U.S. bankruptcy court for a restructuring plan that will allow Celsius to create a new company owned by Celsius creditors and return cryptocurrency to customers. The court's approval of Celsius has breathed new life into what was once the frontier of crypto lending.
Celsius From Bankruptcy To Restoration: Timeline
On June 13, Crypto lender Celsius paused all account withdrawals and transfers, citing "extreme market conditions."
On July 14, New Jersey-based Celsius filed for Chapter 11 protection in July 2022, one month after freezing customer accounts to prevent withdrawals.
In September 2022, Alex Mashinsky, who helped to found Celsius in 2017, resigned as Celsius’ CEO. He stated that the legal dispute contributed a great deal to his mental well-being. But that wasn't all for Mashinky, as the Department of Justice and other regulatory agencies sued him on various fraud charges and sealed his accounts and property in the months that followed.
On December 7, 2022, the court ordered Celsius to return cryptocurrencies for custody accounts. The decision allowed these funds to be withdrawn, which didn't participate in Celsius' earn-and-borrow programme.
On January 4, 2023, the judge handling the Celsius case said, "Celsius’ Earn Program customers were unsecured creditors. Unfortunately, they had assumed the risk and lost and consequently would be lower down the priority list for repayment".
On May 25 2023, Fahrenheit LLC won a bid to buy Celsius for $2 billion. The agreement had many terms including to return the funds of debtors.
In August 2023, Creditors were asked to vote for the reorganization plan of Celsius, which included its assets transferring to Fahrenheit LLC.
On September 14, 2023, Cohen-Pavon, the Chief Revenue Officer at Celsius, pleaded guilty to multiple charges. He admitted to manipulating the price CEL (Celsius Token).
On Sep 26 2023, the voting results were announced and over 95% of the voters accepted to reorganization of Celsius.
On November 9 2023, the judge approved the restructuring plan while allowing nearly 600000 customers to reclaim their funds.
On Nov 28 2023, Celsius allowed additional withdrawals for custody account holders.
On December 28 2023, Celsius for approval to switch to 'MiningCo', a crypto mining firm that's mentioned in restructuring plans. The Celsius customers would own stocks for the restructured firm and it would allow Celsius to distribute more than what it intends in the original proposal.
At last today, on January 31 2024, Celsius has Commenced Distributions of Over $3 Billion of Cryptocurrency to Creditors and had completely emerges from Chapter 11.
What do you think should be 'the best an next' for Celsius towards gaining faith once again?
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