- Defunct crypto lender Celsius is set to allow its creditors to vote for the sale to Fahrenheit Consortium following a Thursday approval from a judge.
- Celsius Creditors will be able to recover 67% to 85% of the company’s holdings if the sale goes through
Celsius creditors have been given a legal green light to hold a vote on whether to sell to Fahrenheit Consortium, a process that could see them recover 67 to 85% of their holdings.
Celsius creditors to vote on the plan to escape bankruptcy
Celsius network bankruptcy was filed in 2022 as the company could not meet its operational budget, and user money had been spent. As an aftermath, a court proceeding has been going on to ensure a smooth company transition as several interested buyers have shown up.
Celsius Network ex-CEO Alex Mashinsky has been arrested for fraud and is under US investigations. However, all is not lost for the company’s creditors. On August 17, a judge gave a legal green light for a vote to be held regarding the sale of the crypto lender.
This development is a final step for the year-long awaited solution of bankruptcy protection legal proceedings and the return of funds to customers. The interim CEO of the company, Chris Ferraro, said that they now remain focused on creating the best outcomes for both customers and creditors.
“We remain laser-focused on creating the best outcome for customers and creditors and returning value as soon as possible.”
Keep watching Fintech Express for more updates on this and other fintech-related developments.