The creditors committee of the Celsius Network has agreed with the proposal from NovaWulf Digital Management to settle the debt. It is expected that clients with deposits under $5,000 will recover 70% of their funds, The Block reports.
Users with larger claims will be entitled to tokenised shares in the new company, run by NovaWulf. Assets will be tradable through a registered broker-dealer on the Provenance platform.
“While the committee will consider all options until the plan is approved and becomes effective, we believe the deal with NovaWulf is the best viable alternative at this time,” the statement said.
Court filings show Celsius received nine bids for acquisition and 40 expressions of interest in a possible deal.
NovaWulf plans to invest between $45 million and $55 million in the platform and add new products such as payment cards, factoring, trade finance and wealth-management services.
Earlier, the judge approved the sale of Bitmain miner-related coupons worth $7.4 million.
On 13 June 2022, Celsius paused withdrawals, exchanges and transfers between accounts.
One month later the platform filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The company’s liabilities exceeded its assets by $2.85 billion.
In September, CEO Alex Mashinsky left the post of chief executive.
Earlier in 2023, the New York Attorney General accused the Celsius CEO of deceiving investors ‘by billions of dollars’.