Skip to main content

Bankruptcy Judge Greenlights Celsius Shift to Bitcoin Mining

The now-defunct crypto lender Celsius has received authorization to pivot to bitcoin mining, following approval from U.S. District Judge Martin Glenn of Manhattan for the firm’s revised strategy. This move comes after the company’s initial proposal encountered obstacles from the U.S. Securities and Exchange Commission (SEC) at November’s end.

Celsius Wins Court Approval to Pivot to Bitcoin Mining Amidst Restructuring Efforts

Initially greenlit for restructuring by the court, Celsius encountered resistance from the U.S. securities regulator. On Nov. 20, 2023, the firm disclosed a shift solely to bitcoin mining. Celsius acknowledged it “received feedback” from the SEC, leading to plans to commence registration of shares in a newly public bitcoin (BTC) mining company, Mining Newco, to be customer-owned.

This week, U.S. District Judge Martin Glenn sanctioned Celsius’ updated blueprint to transition into a bitcoin mining enterprise. Celsius debtors anticipate the total costs and economic incentives for managing Mining Newco will be less than those related to the Fahrenheit deal that was arranged.

Debtors contend the fresh agreement will result in more liquid cryptocurrency for direct customer distribution than if the Fahrenheit deal had persisted, the Celsius estate remarked upon announcing the shift. Celsius’s interim CEO, Chris Ferraro, expressed to Reuters that the judge’s approval marks “a significant day for Celsius creditors.”

Ferraro emphasized the firm’s commitment to “promptly distributing cryptocurrency” to its clientele. It was also mentioned in the report that Celsius is projected to exit Chapter 11 bankruptcy by early 2024. Celsius filed for bankruptcy protection in mid-July 2022, a month after the business halted withdrawals for customers.

In mid-July 2023, Celsius founder Alex Mashinsky was indicted for fraud for “orchestrating a scheme to defraud customers of Celsius through a series of false claims about the fundamental safety and security of the Celsius platform.”

What do you think about the judge approving Celsius’ plan to move forward with a bitcoin mining business? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/wfUve7P
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more