Celsius, the cryptocurrency lending firm, announces a reorganization plan, pivoting its core business to Bitcoin mining after SEC feedback. The company, under Chapter 11 since 2022, faces legal challenges, with former CEO Alex Mashinsky involved in an SEC lawsuit.
Cryptocurrency lending firm Celsius, currently in Chapter 11 bankruptcy since 2022, reveals a strategic shift in its reorganization plan. The ‘NewCo’ entity, a result of this restructuring, will exclusively engage in Bitcoin mining.
This decision follows feedback from the U.S. Securities and Exchange Commission (SEC).
Celsius aims to retain certain assets initially intended for ‘Fahrenheit NewCo.’ The proposed ‘Mining NewCo’ entity is slated for public trading in the U.S. and will be customer-owned.
Celsius plans to seek approval for plan modifications in the coming weeks, with no anticipated resolicitation needed.
The company projects creditor distributions to commence in January 2024. Celsius faced Chapter 11 after a withdrawal halt in 2022, and in 2023, the SEC filed a lawsuit against the firm and former CEO Alex Mashinsky.
Mashinsky, facing charges of securities and commodities fraud, remains on bail until his trial in September 2024.