The U.S. bankruptcy court has granted approval to Celsius Network for a restructuring plan, allowing the return of cryptocurrency to customers and the establishment of a new company owned by Celsius creditors.

U.S. Bankruptcy Judge Martin Glenn in Manhattan endorsed the restructuring in an order issued on Thursday. The revamped business, overseen by Fahrenheit LLC—a consortium including Arrington Capital hedge fund—will primarily engage in mining new bitcoin and generating “staking” fees through validating blockchain transactions.

In July 2022, Celsius, headquartered in New Jersey, filed for Chapter 11 protection, a month after halting customer account withdrawals. Once valued at $3 billion, Celsius represented one of the most significant crypto collapses in the previous year.

The crypto lender is currently in the process of executing the restructuring plan and is anticipated to emerge from Chapter 11 in early 2024, as mentioned in a post on X (formerly known as Twitter).

Michael Arrington, the founder of Arrington Capital, emphasized on Thursday that Celsius’ recovery sets it apart from other crypto companies that experienced collapses in 2022 and were unable to successfully reorganize...


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