Celsius Network, a failed crypto lending firm, has been given the green light to exit bankruptcy and implement its recovery plan. The plan involves transforming the company into a Bitcoin mining firm owned by its creditors. As part of the plan, Celsius will compensate users whose account balances were previously frozen by providing them with cryptocurrency and stock in the new company. The distribution of these assets is expected to begin in early 2024. The settlement will distribute Celsius’ CEL token at a value of $0.25, a decision that was contested by some customers and creditors due to the token’s reduced value. However, the court ruled in favor of the distribution using the CEL token. The plan still requires approval from the U.S. Securities and Exchange Commission (SEC), and if not approved, Celsius may need to liquidate its assets. Celsius has faced regulatory action, including actions from the Commodity Futures Trading Commission (CFTC) and SEC, as well as criminal charges related to fraud against its former CEO, Alex Mashinsky. The company has also reached a settlement with the Federal Trade Commission (FTC) that prohibits it from handling customer assets. Mashinsky’s criminal trial is scheduled for September 2024.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	Alex Mashinsky
Companies	U.S. Bankruptcy Judge Martin Glenn, U.S. Securities and Exchange Commission (SEC), Bloomberg, Celsius Network, Commodity Futures Trading Commission (CFTC)
Currencies	Celsius Network, Bitcoin
Securities	None