Crypto lender Celsius, which filed for bankruptcy last year, has been granted permission by a New York bankruptcy court to send out ballots to its customers for a vote on a proposed settlement plan. The plan involves a consortium called Fahrenheit buying Celsius' assets and launching a new company that would distribute Celsius assets and equity to its customers. <br>

Celsius Network has announced the closure of its app and plans to transition to a new entity named "NewCo," which will focus on crypto mining and staking operations. The company has committed to repaying its creditors, including those who benefitted from its partner programs, and plans to distribute at least $2.03 billion in cryptocurrency. PayPal has been identified as a potential distribution agent for US creditors.

The bankrupt cryptocurrency lending platform Celsius recently released a revised disclosure statement, revealing its plan to close its application within 90 days.In the statement, Celsius outlined its plan to provide cryptocurrency compensation to creditors. Its plan includes distributing liquid cryptocurrencies, including BTC and ETH, to eligible creditors. Due to potential price fluctuations, the expected distribution amount is approximately $2.03 billion.

Alex Mashinsky, former CEO of Celsius Network, will now be subject to electronic monitoring and restrictions on financial transactions as part of his bail conditions, according to a joint request from his lawyers and the US Department of Justice approved by a federal judge. <br>

The U.S. Department of Justice has requested six to eight weeks to gather evidence for its case against Alex Mashinsky, the founder and former CEO of crypto lender Celsius. The DOJ's lawyers stated that they need time to review a large amount of Celsius' corporate records and communications, including over 1,200 videos of Mashinsky and other executives' ask-me-anything sessions. Mashinsky, who was recently arrested, pleaded not guilty to charges of securities fraud, commodities fraud, wire fraud, and conspiracy to manipulate the price of Celsius' token. The trial date is yet to be determined, but the next conference date is scheduled for October 3rd.

Over the weekend, the price of Celsius (CEL) experienced a 5% rally due to a settlement reached between Celsius and its unsecured creditors. The settlement concerned a class claim in which account holders accused the crypto platform's former management of fraudulent activities and misrepresentation. Celsius has offered an additional 5% to the claims of account holders who opt into the lawsuit settlement. The alt's value has climbed by 38% in the last month due to an increase in CEL accumulation, and key momentum indicators are facing upward.

The recent ruling that XRP is a security is unlikely to affect the wind-up of bankrupt crypto lender Celsius, according to the lender's counsel. The new company set to take over Celsius is not engaged in securities offerings or any of Celsius' historic business practices. The Fahrenheit consortium, which won a recent bid for Celsius' assets, will focus on less legally contentious issues like bitcoin mining and Ethereum staking.

Celsius, a well-known cryptocurrency lending platform, has raised concerns among investors by selling off significant holdings of multiple altcoins. Blockchain analysts have tracked transactions indicating that Celsius transferred large amounts of cryptocurrencies to FalconX, a digital assets trading platform.

According to Lookonchain, Celsius started selling altcoins, 1.27M $LINK ($8.5M), 2.83M $SNX ($7.84M), 12,597 $BNB ($3M), 4.45M 1INCH ($2.26M), 8.53M $ZRX ($1.9M), and 439K $FTX ($713K) were transferred to FalconX.

OPNX, an exchange focused on trading bankruptcy claims against failed crypto companies, has added FTX and Celsius claims to its listings. FTX claims can be quickly converted into collateral in the form of OPNX's native reOX tokens or oUSD credit currency, which can then be used to trade crypto futures. The claims are tokenized in partnership with Heimdall, and developers have stated that claims will initially be converted into reOX tokens with a 100% bonus of the market price, which will decrease to 0% over 50 weeks. OPNX was founded earlier this year by Kyle Davies and Zhu Su, co-founders of bankrupt Singaporean hedge fund Three Arrows Capital.