Creditors owed more than $5,000 will be placed in a “Convenience Class”, that will receive a one-time distribution of liquid crypto on the plan effective date.

FTX Transferred $7.7B from Bahamian Estate to US Units Ahead of Bankruptcy Filing; South Korea Planning To Review Local Staking Services

Former Celsius executives (and their wives) are now facing a lawsuit from their creditors.

An attorney for bankruptcy crypto lender Celsius Network said the company might value its CEL token at 20 cents during the recovery process, down significantly from its current market value of 54 cents.

Debtors of bankrupt crypto lender Celsius Network have presented a sale plan to the U.S. Bankruptcy Court of the Southern District of New York.

Celsius and its creditors have begun court action to recover millions they say was fraudulently transferred from founder and former chief executive officer Alex Mashinsky, his wife and other former senior executives.

The official committee of Celsius creditors is proposing to sue Celsius co-founder Alex Mashinsky and other executives for "fraud, recklessness, gross mismanagement and self-interested conduct" that eventually led to the collapse of the crypto lender. In a proposed complaint filed in a New York Bankruptcy Court on Feb. 14, attorneys representing the Official Committee of Unsecured Creditors said the move follows six months of investigations into Celsius’ current and former directors, officers and employees. The committee is made up of seven Celsius account holders and was appointed by the U.S. Trustee in July 2022. The committee represents the interest of Celsius' account holders along with unsecured creditors. (Cointelegraph)

KeyFi founder Jason Stone and others involved with the staking firm are barred from transferring or disposing of most property tied to the Celsius bankruptcy case, according to a temporary restraining order filed in court on Tuesday.

A wallet related to Celsius former CEO Alex Mashinsky reportedly sold 90,000 Celsius tokens (CEL) for $480,000,  blockchain analytical firm Peckshield reported on Feb. 14.

Bankrupt crypto lender Celsius is hoping to raise more than $14 million by selling discount vouchers for mining company Bitmain before they expire as it seeks to restore funds to creditors.