Cryptocurrency lending company Celsius approved to sell assets, creditors expected to recover 60% to 80% of funds

The bankrupt cryptocurrency lending company Celsius, which has announced bankruptcy, has had its asset sale to the Fahrenheit Alliance approved by a judge on Thursday, potentially allowing creditors to recover 67%-85.6% of their assets.

Celsius Asset Sale Approved by Judge

The bankrupt cryptocurrency lending company Celsius has received approval from a judge on Thursday to sell its assets to the Fahrenheit Alliance. This move indicates that creditors could potentially recover 67%-85% of their holdings.

Bankruptcy Background and Management Changes at Celsius

This approval signifies Celsius successfully emerging from the shadows of bankruptcy and moving towards returning funds to its clients. During this period, the crypto market experienced turmoil, with Celsius' former CEO Alex Mashinsky being arrested on fraud charges, which he has publicly denied. Currently, Chris Ferraro has been appointed as the interim CEO of the company and emphasized in an email that the company remains focused on achieving the best outcomes for clients and creditors.

Creditors Vote to Approve Asset Sale

In order to proceed with the asset sale, creditors will receive ballots to vote on the matter. The planned asset sale involves multiple entities, including Arrington Capital and U.S. Bitcoin Corp, among others. The voting period is set from August 24th to September 22nd. According to court documents, creditors can expect returns mostly in Bitcoin (BTC) and Ethereum (ETH), with return rates ranging from 67% to 85.6%, significantly higher than the 47% in a mere asset liquidation scenario.

Furthermore, other cryptocurrency lending companies like Voyager have similar bankruptcy plans, with 97% of creditors in their case opting to support the sale of assets to Binance.US, a deal that was ultimately canceled due to legal issues.