- The US Bankruptcy Court for the Southern District of New York approved Celsius Network’s restructuring plans for bitcoin mining on Wednesday.
- Celsius filed for Chapter 11 bankruptcy protection in July 2022.
A US bankruptcy court has approved Celsius Network’s bitcoin mining shift as part of the ongoing Chapter 11 bankruptcy proceedings the collapsed crypto lender filed in July 2022.
The approval order was given by Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York on December 27, Reuters reported.
Per the ruling, Celsius can go ahead with the restructuring plans that aims at focusing the company’s operations on Bitcoin mining.
The judge’s order overruled objections to the restructuring plans, paving the way for the move as the crypto firm looks to navigate away from the impactful bankruptcy proceedings. As reported, US Bitcoin Corp announced in August that it had entered into agreed to host 8,500 miners for Celsius Network..
Celsius customers allowed withdrawals
With yesterday’s court approval, a total of $225 million in crypto earmarked for a business operations rejected by the SEC, is now available for distribution to Celsius customers. Shares in the new mining company will also be available to customers.
Celsius began allowing withdrawals for some customers in late November. The plan allows eligible participants in the crypto lender’s custody program to withdraw 72.5% of their crypto holdings, with a deadline set for February 28, 2024.