Celsius to return creditors’ funds in Bitcoin and Ethereum

Creditors in the Celsius Network bankruptcy proceedings are converting altcoins into Bitcoin and Ethereum. Such a proposal поступило to the court from the platform’s debtors.

The option will not apply to withhold and custody accounts (Withhold & custody accounts). If approved, the conversion would begin on July 1.

The plan will not affect the amount of each creditor’s claim. The debtors will seek to maximize payments.

Updated information on token conversions will be included in monthly reports.

On 26 May 2023, the winner of the Celsius Network asset-management tender became the Fahrenheit consortium.

It was formed by venture firms Arrington Capital and Proof Group, the mining company US Bitcoin Corp, and individual investors Stephen Kokinos (former head of Algorand) and Ravi Kas.

According to the application, the group will form a new public company holding Celsius assets, fully owned by the platform’s creditors.

Fahrenheit will distribute among them liquid digital currencies totaling about $500 million. The created entity will take over management of Celsius’s alternative investments, its loan portfolio and mining business.

In June 2022, Celsius paused withdrawals, exchanges and transfers between accounts ‘due to extreme market conditions’.

In July, after filing the bankruptcy petition, Celsius reported a balance-sheet hole of $1.2 billion. In August, it emerged that the company’s liabilities exceeded its assets by $2.85 billion.