Celsius Network payment plan approved by New York judge, now it’s up to the SEC

Celsius’ unconventional plan of shifting into a publicly-traded bitcoin mining shop is one step closer to becoming a reality


Former Celsius CEO Alex Mashinsky | Kevin McGovern/Shutterstock modified by Blockworks


A federal judge in New York gave Celsius Network the green light to transition into a bitcoin mining operation owned by the failed crypto lender’s creditors. 

Former Celsius customers will receive a combination of cryptocurrency assets and stock in the new venture, which will be publicly listed if all goes according to plan. The US Securities and Exchange Commision will also have to sign off on the listing, and will have the opportunity to “challenge” any crypto asset transactions they deem to involve securities. 

US bankruptcy judge Martin Glenn has asked the securities regulator to move swiftly in making its decision. 

The approval marks what could be the end of a lengthy process for Celsius and their creditors. In August, the debtor sent its plan to creditors, some of which opposed, but the official committee representing junior creditors approved the filing

In Glenn’s opinion, filed alongside his approval of the plan, the judge noted that “one of the most contentious issues” throughout the Chapter 11 case has been disputes over how to value the CEL token, Celsius’ native coin. Some creditors argued CEL holders should be reimbursed a minimum of $0.81, while others said compensation of CEL should not be included in the plan at all. 

Parties eventually came to a settlement agreement, which stipulated that CEL token deposit claims be valued at $0.25 per token. Account holders are still free to file and continue claims against third parties for alleged market manipulation regarding CEL. 

The US Department of Justice charged former Celsius CEO Alexander Mashinsky with fraud and manipulation relating to his role at the company in July 2023, a year after the company filed for bankruptcy. 

Mashinsky has pleaded not guilty to all counts and his jury trial is scheduled for September 2024 in the Southern District of New York, the same courthouse where a jury found FTX founder Sam Bankman-Fried guilty on seven federal counts earlier this month. 

“[Mashinsky] told investors that Celsius would generate sustainably high returns by making low-risk collateralized loans to first-tier institutions and cryptocurrency exchanges as well as overcollateralized loans to retail borrowers,” New York Attorney General Letitia James said when the charges were filed.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



As part of the #Breakout2024 plans, Radix has introduced Token Trek


House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January


Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do


And, weeks of a potential crypto ETF decision are no stranger to chaos


The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month


More than half of Solana transactions fail