Celsius Network is transforming into a Bitcoin mining firm in order to settle debts and avoid bankruptcy.
Celsius Network, a cryptocurrency lender, has won judicial approval to transform into a Bitcoin mining company in order to repay consumers. This modification is intended to fix the frozen funds issue that has plagued account holders for more than a year.
Last Thursday, the U.S. Bankruptcy Court in New York approved this plan, signaling a fundamental shift in Celsius’s post-financial upheaval course. According to corporate representatives, assets will begin to be returned by the beginning of next year.
The company’s strategy, which has been approved by its creditors, outlines a road out of Chapter 11 bankruptcy, overshadowing past claims of mismanagement against some former leaders.
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However, some clients are wary about the shift to Bitcoin mining, and regulatory obstacles persist. Celsius has emphasized the importance of the SEC’s approval, stating that if mining operations do not proceed, they may be forced to liquidate.
A judge has requested the SEC to issue a decision on Celsius’s rebranding as a publicly traded Bitcoin mining firm as soon as possible.
The court’s approval of Celsius’ exit strategy brings to a close a weeks-long trial in which customers criticized the new leadership and questioned the bankruptcy proposal and its associated costs. The valuation of Celsius’s CEL coin, which is essential for assigning digital assets and shares in the new mining operation to creditors, is still a point of contention.
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