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Celsius is one among the several crypto lenders who faced bankruptcy following the rapid industry growth during the pandemic, following which the crypto leader filed for Chapter 11 protection in July 2022
Crypto player Celsius Network is reportedly approved for Bitcoin mining by a US bankruptcy judge on Wednesday. The judge ruled that the company could change its previously approved bankruptcy plan because creditors and customers are not found in a less advantageous position under the new restructuring.
The US Bankruptcy Judge Martin Glenn in Manhattan underlined that the bankruptcy plan approved in November is flexible enough to allow Celsius to switch to a backup plan, after the company’s roadblock with the US Securities and Exchange Commission.
Celsius is one among the several crypto lenders who faced bankruptcy following the rapid industry growth during the pandemic, following which the crypto leader filed for Chapter 11 protection in July 2022.
This switch would put the spotlight on the US Bitcoin Corp which is expected to be in charge of running the new creditor-owned mining business alone. Celsius is likely to break all its ties with some of the outside bidders that were initially selected to manage Celsius along with Bitcoin.
Some creditors and the US Department of Justice’s bankruptcy watchdog argued that the change is significant and Celsius should put up the proposal for a new vote by creditors. However, the company received the court’s approval without any new vote.
Celsius is expected to emerge from bankruptcy in early 2024.
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