Cryptocurrency lending agency Celsius stated its reorganized firm will focus solely on Bitcoin mining following suggestions from america Securities and Alternate Fee (SEC).
In a Nov. 20 announcement, Celsius stated the core enterprise of the ‘NewCo’ firm proposed below its restructuring plan can be Bitcoin (BTC) mining somewhat than staking. The agency stated it had reached the choice to focus its efforts on mining “primarily based on the SEC’s suggestions [and] in session with the Official Committee of Unsecured Collectors.”
Below the restructuring, Celsius stated a few of its belongings which it beforehand proposed to switch to an entity known as ‘Fahrenheit NewCo’ can be retained by the agency’s estates. The corporate plans to have the ‘Mining NewCo’ entity publicly traded in america and owned by Celsius prospects.
“Within the coming weeks, the Debtors intend to file a movement with the Chapter Courtroom to approve modifications to the Plan to replicate the brand new Mining NewCo transaction,” stated Celsius. “The Debtors don’t imagine that these modifications would require resolicitation of the Plan. The Debtors nonetheless anticipate that distributions to collectors will begin in January of 2024.”
Following suggestions from the Securities and Alternate Fee (SEC), Celsius will start to transition to a Mining-Solely NewCo. https://t.co/VVrLLjQWO8
— Celsius (@CelsiusNetwork) November 21, 2023
Associated: Courtroom confirms Celsius chapter exit plan, $2B in crypto to go to collectors
Celsius filed for Chapter 11 safety in U.S. Chapter Courtroom for the Southern District of New York in July 2022 following a pause in withdrawals on the platform. In July 2023, the SEC filed a lawsuit towards Celsius and Alex Mashinsky, alleging the previous CEO falsely promised a protected funding via the agency’s Earn Curiosity Program.
Authorities with the U.S. Justice Division arrested Mashinsky in July, charging the previous Celsius CEO with securities fraud, commodities fraud and wire fraud associated to allegedly defrauding prospects. On the time of publication, Mashinsky stays free on $40 million bail via his trial scheduled to start in September 2024.
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