Crypto lender Celsius Network will seek to exit bankruptcy under the guidance of asset manager NovaWulf Digital Management, which will take over the operations of a new company that will be owned by Celsius customers, the company said at a court hearing in Manhattan on Wednesday.
Under the plan, Celsius customers with less than $5,000 in their accounts will be eligible to receive a one-time payment in bitcoin, Etherium or the stablecoin USDC, according to court documents filed on Wednesday. Celsius estimates that option will be available to more than 85% of its customers, providing them with about 70% of the value of their deposits.
NovaWulf has agreed to pay up to $55 million to the reorganized company, called "NewCo" by Celsius, which will be owned by Celsius creditors and will continue Celsius' bitcoin mining and loan businesses. NovaWulf will share in the new business' profit, Kwasteniet said.
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