Kenne Michael 
The cryptocurrency lending firm Celsius Network has initiated a bankruptcy trial to reestablish itself as a Bitcoin mining entity owned by its users.
The company is working diligently to unlock and release certain customer funds that have been held on its platform since June 2022, with the aim of achieving this by the end of the current year.
During a recent bankruptcy hearing held in New York, Christopher S. Koenig, the legal representative for Celsius, reportedly asserted that the restructured company, emerging from Chapter 11 bankruptcy, will receive a substantial infusion of $450 million in capital.
Fahrenheit LLC, a consortium led by Arrington Capital, provides this financial backing.
Nevertheless, there are challenges ahead. Judge Martin Glenn is presently assessing Celsius’s proposed plan, which is facing opposition from customers with frozen funds and affiliates of Lantern Ventures.
The opposing parties assert that the new business has received an overvaluation.
Celsius’s repayment strategy entails distributing around $2 billion in Ethereum and Bitcoin and shares in the new corporate entity.
Customers would also acquire a stake in legal actions against former executives, including co-founder and former CEO Alex Mashinsky, who is currently facing fraud charges.
