Celsius to exit bankruptcy in early 2024 and give back some $2 billion to customers

Marco Quiroz-Gutierrez

<p>Bankrupt crypto lender Celsius is set to emerge from bankruptcy by early 2024 after its reorganization plan was approved by a New York court.</p><div class="paywall-selector"></div><div class="paywall">



<p>The plan would return between <a href="https://www.axios.com/pro/fintech-deals/2023/09/26/celsius-creditors-vote-favor-restructuring">67% and 85% of holdings</a> to creditors, who largely approved the measure in September, and another $2 billion has been allocated to customers who had money on the Celsius platform.</p>



<p>Retail customers who had funds in the form of the company’s native CEL token are to receive 25 cents on the dollar for each token. The price of Celsius’ native token jumped more than 30% on Friday morning, to just above 27 cents, according to <a href="https://www.coingecko.com/en/coins/celsius-network-token">CoinGecko</a>.</p>



<p>As part of the reorganization plan, a new company will emerge owned by Fahrenheit LLC, a group that includes Arrington Capital and the crypto miner U.S. Bitcoin Corp., which <a href="https://fortune.com/crypto/2023/05/25/celsius-fahrenheit-crypto-bankruptcy-auction/">won the bidding war</a> for Celsius&#8217;s assets in May.</p>



<p>The relaunched company will be referred to in filings by the placeholder &#8220;NewCo&#8221; until a new name is chosen. The enterprise, which will focus on staking and mining, will have a $1.25 billion balance sheet, which includes $450 million in liquid cryptocurrency, according to a court filing. The company expects to make “$10 to $20 million per year” through staking crypto on the Ethereum network, according to the filing.</p>



<p>Fahrenheit also agreed to buy a $50 million minority stake in the new company and to list those shares publicly so Celsius customers can sell their stakes and recuperate more of their losses, according to <a href="https://www.reuters.com/markets/deals/crypto-lender-celsius-network-cleared-exit-bankruptcy-2023-11-09/">Reuters</a>.</p>



<p>Celsius filed for Chapter 11 bankruptcy <a href="https://fortune.com/crypto/2023/05/25/celsius-fahrenheit-crypto-bankruptcy-auction/#:~:text=In%20June%2C%20Celsius%20froze%20customer,investors%20and%20committed%20crypto%20fraud.">in July 2022</a> and was one of the major crypto companies to collapse following the implosion of Terraform Labs&#8217; stablecoin TerraUSD. The company’s former CEO, Alex Mashinsky, was later charged with fraud by the Justice Department and is currently <a href="https://www.reuters.com/markets/us-sec-sues-celsius-network-its-founder-2023-07-13/">out on a $40 million bond</a> as he awaits a trial scheduled for September. (He pleaded not guilty.)</p>



<p>The new company emerging from the bankruptcy proceedings intends to pursue litigation against Mashinsky, according to Reuters.<span id="docs-internal-guid-27c4a503-7fff-f754-4877-67a2968dfe7d"></span></p></div>

The company filed for bankruptcy in July 2022.

Learn more about all things crypto with short, easy-to-read lesson cards. Click here for <a href="https://fortune.com/crypto/crash-course/">Fortune's Crypto Crash Course</a>.

F-BreakingNews

Cryptocurrency

Companies

Celsius to exit bankruptcy in early 2024 and give back some $2 billion to customers | Fortune Crypto

Some Fortune Crypto pricing data is provided by Binance.

Leo Schwartz

BNY launches new blockchain accounting tool with BlackRock as first client

/crypto/2025/04/03/bank-new-york-blackrock-crypto-bitcoin-custody-blockchain-launch/

Ben Weiss

Eric Trump shares details of new Bitcoin mining venture, including planned Nasdaq ticker

/crypto/2025/04/02/eric-trump-hut-8-american-bitcoin-donald-trump-jr/

Catherine McGrath

GameStop now has $1.5 billion to splurge on a Bitcoin reserve after private offering 

/crypto/2025/04/02/gamestop-bitcoin-reserve-private-offering/

Crypto giant Circle just filed for an IPO: Here are 5 key takeaways

/crypto/2025/04/01/crypto-giant-circle-just-filed-for-an-ipo-here-are-5-key-takeaways/

Coinbase stock logs worst quarter in two years amid economic uncertainty

/crypto/2025/04/01/coinbase-stock-logs-worst-quarter-in-two-years-amid-economic-uncertainty/

Jeff John Roberts

Tether’s CEO says his $144 billion stablecoin is good for the U.S. dollar. Is he right?

/crypto/2025/04/01/tethers-ceo-says-his-144-billion-stablecoin-is-good-for-the-u-s-dollar-is-he-right/

Fortune Editors

Fortune Crypto provides smart and timely news about Bitcoin, Ethereum and how startups and big companies are using blockchain to transform finance and investing.

Daily News, Analysis &amp; Price Data on Bitcoin, Ethereum &amp; More

Uncategorized

homepage

Fortune Crypto

NFTs & Culture

Regulators

Latest News, Analysis, Insights &amp; Price Data on Cryptocurrencies

The Coins

Christiaan Hetzner

The mastermind behind Europe's hottest new car brand is leaving Volkswagen in a shock departure

https://fortune.com/2025/04/01/wayne-griffiths-cupra-seat-leaves-volkswagen-shock-departure/?itm_source=parsely-api

Sam Bankman-Fried parts ways with ‘Diddy’ as feds transfer crypto con man from Brooklyn prison to Oklahoma

https://fortune.com/crypto/2025/03/28/sam-bankman-fried-brooklyn-oklahoma-tucker-carlson-federal-transfer-center/?itm_source=parsely-api

https://fortune.com/crypto/2025/04/02/eric-trump-hut-8-american-bitcoin-donald-trump-jr/?itm_source=parsely-api

Paolo Confino

Trump Media hasn’t been spared in the stock market decline. It’s down 44% this year

https://fortune.com/2025/04/02/trump-media-stock-price-net-worth/?itm_source=parsely-api

https://fortune.com/crypto/2025/04/02/gamestop-bitcoin-reserve-private-offering/?itm_source=parsely-api

Elon Musk says the federal government has no plans to use Dogecoin

https://fortune.com/crypto/2025/03/31/elon-musk-says-no-plans-dogecoin-use-federal-government-doge/?itm_source=parsely-api