Celsius Revamp Plan Hits Speed Bump With SEC: Source

The U.S. Securities and Exchange Commission wants more information about the assets of the former crypto lender, which is reorganizing through bankruptcy, a person familiar with the matter said.

Timeline of Celsius

Cryptocurrency platform Celsius Network has won permission to end its bankruptcy case. And with that approval, the company can now return most of the remaining crypto back to its hundreds of thousands of customers, the Wall Street Journal (WSJ) reported Thursday (Nov. 9).

Celsius Network, the embattled crypto lender, is making strides toward repaying its customers by the end of 2023. The company's legal counsel, Christopher Koenig, recently revealed during an October 2 hearing in New York that they are pursuing court approval for a reorganization plan that promises a brighter future for the platform.

The Celsius case is a significant test for the crypto industry. If they successfully relaunch, it might provide a blueprint for other failed platforms. But there are many legal and ethical hurdles to clear first. Let's delve in to know more about the company's revival story.

Arrington Capital founder Michael Arrington stepped down from his position as a board member of the new company that will take over the operations of bankrupt crypto lender Celsius. Arrington revealed that Ravi Kava would replace him on the new company's board.

The Celsius Official Committee of Unsecured Creditors reached an agreement with the Earn Ad Hoc Group and Simon Dixon, resolving all debt issues. Observers appointed to NewCo board.

Core Scientific has agreed to sell its Cedarvale Bitcoin mining site in Texas to Celsius Mining LLC for $14 million. The deal will settle ongoing litigation and allow Celsius to expand its Texas data centers.

Core Scientific has agreed to sell bankrupt crypto lender Celsius its Cedarvale mining location in Ward County, Texas for a price tag of $14 million, according to a Thursday court filing.

Celsius has filed a motion in its bankruptcy case to resolve ongoing litigation and disputed contracts and claims, seeking court approval of a settlement agreement and purchase agreement with Core Scientific.

Bankrupt cryptocurrency lending company, Celsius' (CRYPTO: CEL) successor company is likely to appoint former Algorand (CRYPTO: ALGO) CEO Steve Kokinos who stepped down from his role in July 2022. He is also a co-owner of Fahrenheit which won the Celsius auction in May 2023 wherein it undertook around $500 million worth of liquid crypto.

EquitiesFirst is a private lending platform that owed Celsius approximately $439 million in cash and bitcoin as of July 2022. Celsius had initially obtained collateralized loans from EquitiesFirst in 2019 but was unable to return the collateral in 2021.