It has been reported that Celsius Network, the cryptocurrency lending platform, has narrowed its post-bankruptcy strategy to focus on Bitcoin mining. The company announced that they would only focus on Bitcoin mining when they emerged from bankruptcy on November 30th. This process was guided by legal regulators.
Martin Glenn, the bankruptcy judge in the US, expressed his dissatisfaction with Celsius Network’s Chapter 11 proceedings and the sudden change on November 30th. Glenn repeatedly reminded the Celsius team of the importance of the agreement with the SEC.
Judge Glenn stated that the company’s proposal to transition to Bitcoin mining in the future deviated significantly from the agreement that creditors initially voted on and that this could be met with a significant reaction from the creditors.
During the November 30th hearing, Celsius’ lawyer Chris Koenig claimed that the court-approved bankruptcy plan provided flexibility for the company to transition to a mining-focused business. According to Koenig, the agreement was equally beneficial for the creditors, so there was no need for a new vote.
Celsius, as one of several cryptocurrency lending platforms that went bankrupt after the rapid growth of the sector during the COVID-19 pandemic, filed for Chapter 11 protection in July 2022. According to the updated Celsius plan summarized by Koenig, crypto assets worth $225 million controlled by a consortium known as Fahrenheit will be returned to the team.