Celsius seeks court approval to start repaying customers by year-end
Embattled crypto lender Celsius Network has told a judge it plans to start paying back its customers by year’s end, amid an Oct. 2 hearing seeking approval for its reorganization plan.
In his opening statements at the confirmation hearing in New York, Celsius’ legal counsel Christopher Koenig said the new company dubbed “NewCo” will emerge from the proceedings with $450 million in seed funding.
A filing on Sept. 29 shows that Celsius plans to partially repay its creditors using $2.03 billion in Bitcoin (BTC) and Ethereum (ETH) and stock in the new company.
#Celsius will distribute at least $2.03B of crypto to Creditors.
Meanwhile, NewCo will be seeded with up to $450 million in crypto.— Celsius NewCo Community (@CelsiusNewCo) October 2, 2023
NewCo has been backed by a group of companies in a consortium called Fahrenheit LLC which will manage the mining and staking business.
The judge presiding over the case, Martin Glenn, is considering whether to approve Celsius’s restructuring plan. The plan will also need to be cleared by security regulators. Despite garnering an overwhelming majority of votes in favor, it is being challenged by some creditors, according to reports.
“The Debtors arrive at Confirmation with a Plan that has the support of over 95% of voting Account Holders by both number and dollar amount,” Celsius stated in a filing presented at the confirmation hearing.
Related: Celsius creditors flag renewed phishing attacks ahead of bankruptcy plan
If the Celsius plan is approved, it would be one of the first failed crypto platforms from 2022 to be resurrected in a Chapter 11 bankruptcy case.
Celsius customers have been waiting to be made whole ever since the company halted withdrawals in June 2022 following the collapse of the Terra/Luna ecosystem.
Magazine: Simon Dixon on bankruptcies, Celsius and Elon Musk: Crypto Twitter Hall of Flame
Politics
MP Zarah Sultana who was ousted from Labour announces she is starting new political party with Jeremy Corbyn
An MP who was ousted from the Labour Party has announced she is setting up a new political party with Jeremy Corbyn.
Independent MP Zarah Sultana said she and the former Labour leader will co-lead the new party, which she did not provide a name for.
She said other independent MPs, campaigners and activists from across the country will join them, but did not name anyone.
Politics latest: Zarah Sultana’s stinging resignation letter
Ms Sultana also said she was “resigning” from the Labour Party after 14 years.
She was suspended as a Labour MP shortly after they came to power last summer for voting against the government maintaining the two-child benefit cap.
Several others from the left of the party, including Mr Corbyn, were also suspended for voting against the government, and also remained as independent MPs.
However, Ms Sultana was still a member of the Labour Party – until now.
Mr Corbyn has previously said the independent MPs who were suspended from Labour would “come together” to provide an “alternative.
The other four are: Iqbal Mohamed, Shockat Adam, Ayoub Khan and Adnan Hussain.
Mr Corbyn and the other four independents have not said if they are part of the new party Ms Sultana announced.
In her announcement, Ms Sultana said she would vote to abolish the two-child benefit cap again and also voted against scrapping the winter fuel payment for most pensioners.
Ms Sultana also voted against the government’s welfare bill this week, which was heavily watered down as Sir Keir Starmer tried to prevent a major rebellion from his own MPs.
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Protesters block Israeli arms manufacturer in Bristol
On Wednesday, Ms Sultana spoke passionately against Palestine Action being proscribed as a terror organisation – but MPs eventually voted for it to be.
She said to proscribe it is “a deliberate distortion of the law to chill dissent, criminalise solidarity and suppress the truth”.
Ms Sultana said they were founding the new party because “Westminster is broken but the real crisis is deeper – just 50 families now own more wealth than half the UK population”.
She called Reform leader Nigel Farage “a billionaire-backed grifter” leading the polls “because Labour has completely failed to improve people’s lives.
Ms Sultana called Nigel Farage a ‘billionaire-backed grifter’. Pic: PA
The MP, who has spoken passionately about Gaza, added: “Across the political establishment, from Farage to Starmer, they smear people of conscience trying to stop a genocide in Gaza as terrorists.
“But the truth is clear: this government is an active participant in genocide. And the British people oppose it.
“We are not going to take this anymore.”
A Labour Party spokesperson said: “In just 12 months, this Labour government has boosted wages, delivered an extra four million NHS appointments, opened 750 free breakfast clubs, secured three trade deals and four interest rate cuts lowering mortgage payments for millions.
“Only Labour can deliver the change needed to renew Britain.”
Roman Storm is scheduled to appear in a New York courtroom for his criminal trial on July 14, facing money laundering and conspiracy charges.
The Wyoming Senator seeks to end double taxation and add clarity to the tax treatment of crypto staking, mining, and lending transactions.
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