Bankrupt Celsius Says Restart Is Crypto Customers’ Best Option
- Celsius is seeking court approval on bankruptcy exit plan
- Failed crypto lender wants to re-launch as creditor-owned firm
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Failed crypto lender Celsius Network kicked-off a bankruptcy trial over its plan to restart as a user-owned Bitcoin miner, telling a judge it wants to repay customers whose funds have been frozen on the platform since June 2022 a portion of what they’re owed by year’s end.
Celsius lawyer Christopher S. Koenig said Monday during a New York bankruptcy hearing that the new company slated to emerge from Chapter 11 will be seeded with $450 million in capital and financial backing from a group of companies picked to manage the mining business, a consortium named Fahrenheit LLC that’s led by investment firm Arrington Capital.