Debtors’ Asset, Liability Valuation Approved by Celsius Advisor

Joel E. Cohen, a mathematician and biologist who represented the valuation advisor for Celsius Network, Stout Risius Ross, LLC, validated the accuracy of the fair value of certain debtors’ assets and liabilities as of May 31, 2023.

After months of back-and-forth, the majority of Celsius creditors recently voted in favor of a proposal to return approximately $2 billion in Bitcoin and Ethereum to creditors.

Two days after attaining consensus around Celsuis’ reorganization plan, a Sept. 28 court filing validated the accuracy of the value of debtors’ assets and liabilities.

Stout conducted the valuations of cryptocurrency assets, loans, and alternative investments. In a declaration submitted to the New York bankruptcy court, Cohen explained the methodologies used in the valuation analysis and concluded:

“Based on my work performed and the information and methodologies considered, I believe the Valuation Report accurately reflects the fair value of certain of the Debtors’ assets and liabilities as of May 31, 2023.”

According to a disclosure statement filed on August 17, approximately $2 billion will be redistributed among creditors, and the plan will also distribute equity in a new company, provisionally referred to as “NewCo.”

The New Jersey bankruptcy court approved the insolvent cryptocurrency lending platform BlockFi’s liquidation plan, which featured a similar situation.

Sept. 26 court filing in the bankruptcy case of BlockFi. Source: Kroll

The quantity of repayment received by BlockFi’s unsecured creditors will depend significantly on the outcome of its legal battle against FTX and other insolvent cryptocurrency firms.