The court issued постановление, according to which creditors bankrupt cryptocurrency-lending platform Celsius Network must vote on the sale of the group’s digital assets to the Fahrenheit consortium.
The document marks the final stage in the firm\’s bankruptcy proceedings. If the deal succeeds, clients could recover 67–85% of funds.
Ballots will be sent to creditors. Fahrenheit includes venture firm Arrington Capital, the Proof Group, the miner U.S. Bitcoin Corp, and individual investors such as former Algorand head Steven Kokinos and Ravi Kaza.
Interim Celsius CEO Chris Ferraro said the company remains focused on “creating the best possible outcomes” for all participants and returning funds “as quickly as possible.”
Earlier, reporters reported that the lending platform had struck a number of agreements that pave the way for court approval for the return of funds to clients.
The package of agreements laid the groundwork for approval of Celsius’s restructuring plan in October. Creditors and investors will begin receiving funds by year-end if the decision is favorable.
The company also reached an agreement with Series B investors to distribute $25 million from the sale of GK8, the crypto custodian.
In June 2022, Celsius halted withdrawals, swaps and transfers between accounts due to extreme market conditions.
After filing bankruptcy filing the firm reported a “hole” in its balance sheet at $1.2 billion. In August it emerged that the company\’s liabilities exceeded its assets by $2.85 billion.
In September, the platform\’s head Alex Mashinskyleft the post as CEO. In early 2023, the New York Attorney General\’s office accused him of deceiving investors “by billions of dollars”.
On July 13, the US Department of Justice filed seven criminal charges against the former Celsius chief. Among them are securities fraud, manipulation of the CEL token price and misleading investors.
Subsequently, the US Federal Trade Commission announced a settlement of the claims against the company. The agreement provides for the platform to pay $4.7 billion.