(CTN News) – Celsius Network, a cryptocurrency lender, has been granted permission by a U.S. bankruptcy judge to transition into the field of Bitcoin mining.
The judge’s ruling ensures that this change in direction will not have any negative impact on the creditors or customers. This decision was reached after facing challenges with the U.S. Securities and Exchange Commission.
After their initial plan was rejected, Celsius made the strategic decision to focus on mining and entrusted the management of the creditor-owned mining business to US Bitcoin Corp, led by Asher Genoot of Hut 8.
As a result, Celsius also separated from other potential buyers, such as Arrington Capital, who were initially chosen to collectively oversee the new company known as “Fahrenheit.”
The change proposed by Celsius faced opposition from certain creditors and the U.S. Department of Justice’s bankruptcy watchdog.
They argued that the change was significant enough to warrant a new vote by creditors. Initially, Glenn, the judge, seemed sympathetic to this argument, stating that the mining plan was not what the creditors had originally voted on.
However, in the end, Glenn approved the deal without requiring a new vote. Celsius’ revised bankruptcy plan also allows for the release of $225 million in cryptocurrency assets that would have been allocated to the rejected business lines.
Consequently, more cryptocurrency will be returned to Celsius’ customers, and they will also receive equity shares in the new bitcoin mining venture, as stated by Glenn.