Failed Crypto Lender Celsius Network Cleared to Exit Bankruptcy

  • Celsius has said it could start repaying customers in January
  • Celsius plan caps trial over deal to turn into Bitcoin miner

Alex Mashinsky, center, arrives at court in New York on Oct. 3.

Photographer: Stephanie Keith/Bloomberg

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Failed crypto lender Celsius Network LLC won bankruptcy court approval of its plan to transform into a creditor-owned Bitcoin mining firm as part of a broader proposal to repay customers whose accounts have been frozen for more than a year.

US Bankruptcy Judge Martin Glenn said Thursday he would confirm Celsius’ plan to repay customers through a combination of cryptoassets and stock in the new, publicly listed Bitcoin mining company. Celsius lawyers have said the platform could start distributing assets early next year.