A judge has ruled that Celsius Network will maintain the exclusive right to develop an exit plan from bankruptcy until the end of March, following substantial progress in arranging a deal with NovaWulf to establish a new recovery corporation.
This could allow the cryptocurrency lending firm to exit bankruptcy by the end of June, just under a year after its collapse in 2022. Despite complaints from the US government and creditors that liquidation could be an option, Judge Glenn granted the extension of exclusivity.
Celsius has been able to furnish details of the deal and ensure customer funds are not depleted in the interim. The company's interim CEO, Chris Ferraro, provided an update on the return of funds held in Custody accounts, stating that $17.7 million had been withdrawn as of Tuesday, with an additional $3.5 million in progress.