Celsius Bankruptcy Process Complete - Over $3 BILLION Begins to be Distributed to Former Users...

Those who are owed funds from Celsius approved this plan themselves, with a total of 98% of creditors voting for it. With approval from their creditors, and now the courts, the final stage of the bankruptcy process begins.

Both crypto and fiat funds are among the $3 billion, and to help distribute a sum this large among so many people, both PayPal and Coinbase are assisting with payouts. 
Those who had funds in Celsius when it collapsed will be reimbursed in two ways, first is the $3 billion in funds that will be distributed . Then there's the new Bitcoin mining company they're launching with the funds they've been allowed to keep.
Under new leadership of CEO Matt Prusak, who already runs Mining company Hut8, the remaining resources of Celsius will launch their new mining company 'Iconic Digital'.
Shares of the new mining company will be used cover the rest of what they owe, distributing them before the company intends to go public.
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$2 BILLION Crypto Refund is Coming to Former Celsius Users...

Failed crypto lending platform, Celsius, is on the brink of initiating the process to reimburse its clients. The plan involves returning over $2 billion in digital assets to customers, and has garnered the approval of creditors.

Legal filings pertaining to the Celsius case reveal that the company's bankruptcy team secured approval from 95% of former users to implement their proposed resolution.

One Final Step...

However, the plan's execution still hinges on judicial approval, which will be sought during a hearing at the Bankruptcy Court in the Southern District of New York, where the final plan to return user funds will be determined.

The reorganization strategy of Celsius orders the allocation of approximately USD 2.03 Billion, denominated in BTC and other cryptocurrencies, to creditors. The Celsius team notes that the coin's value is susceptible to the volatile nature of the crypto market.

Moreover, the reorganization plan, portrayed as a "swift and feasible route" to navigate out of bankruptcy and ensure maximal fund recovery for clients, envisions the formation of a new cryptocurrency entity.

The Remaining Celsius Leftovers Will Be Used to Create a Whole New Company...

This new company, dubbed "NewCo", will fall under the management of Fahrenheit Group, a consultancy firm. According to Celsius's plan, the crypto firm will prioritize customer ownership and will concentrate on Bitcoin mining and Ethereum staking.

The plan also states that NewCo, serving as the conduit through which Celsius client funds would be disseminated, will be endowed with up to USD 450 million in cryptocurrencies to fuel its development.

Celsius Network was a prominent cryptocurrency entity in the United States until it filed for bankruptcy July 2022. Although its downfall was triggered by the collapse of Luna and the Terra protocol, in which it was heavily invested, many attribute the company's failure to an unsustainable business model, saying that Celsius would collapse in a dramatic way, sooner or later.

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

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