Celsius set to hold vote on bankruptcy plan

Crypto lender Celsius is set to hold a vote on its plan to sell assets to the Farenheit consortium.

Creditors will be sent ballots to vote on the plan, and have around a month to consider the plan.

Fahrenheit Consortium, which includes blockchain-based venture capital firm Arrington Capital, will provide the capital, management team, and technology to establish and operate the new company. The consortium’s bid was selected by Celsius in May this year.

Celsius’ interim CEO Chris Ferraro, stated that Celsius ‘remains laser focused on creating the best outcome for customers and creditors and returning value as soon as possible’.

The vote follows a judge’s approval of disclosures that suggested that creditors can expect to recover around 67 to 85 per cent of their holdings.

This approval marks the end of Celsius’ bankruptcy proceedings, and means that customers may soon get their money back.

Last year, Celsius filed for bankruptcy after the collapse of the Terra ecosystem and the Anchor Protocol left a gaping hole in their balance sheet.

Since then, Celsius founder and CEO Alex Mashinsky has resigned, and was arrested earlier this year on charges of securities fraud, commodities fraud, wire fraud, and conspiracy to manipulate the price of Celsius’ token CEL. Mashinsky has denied all charges.