The U.S. bankruptcy court has approved Celsius's transformation into a Bitcoin mining company, pending SEC approval

ChainCatcher news, according to Bloomberg, a U.S. bankruptcy court has approved the transformation of the crypto lending company Celsius Network LLC into a Bitcoin mining company owned by creditors, as part of a proposal to repay customers whose accounts have been frozen for over a year. Approximately $2 billion worth of Bitcoin and Ethereum will be redistributed to Celsius creditors along with equity in NewCo. Celsius's lawyers stated that the platform may begin asset distribution early next year.

The transformation plan also requires approval from the SEC, and if everything goes as planned, the new company will go public. If the proposal is not approved, Celsius may turn to liquidation. The judge urged the SEC to make a swift decision on Celsius's transformation plan.