Judge Martin Glenn reportedly said that the proposed transformation into a Bitcoin mining business deviates significantly from the deal creditors initially voted on.
Celsius Network, a cryptocurrency lending platform, might need to secure a fresh vote from creditors for its planned shift to a Bitcoin mining venture, as a U.S.
The crypto lender provided details on Thursday, Nov 30, of its plan to only mine Bitcoin when it emerges from bankruptcy, a scaled-down business that reflects guidance from regulators.
According to a report, Judge Martin Glenn, responsible for Celsius Network’s Chapter 11 proceedings, voiced displeasure on Thursday, Nov 30, regarding the abrupt change, emphasizing his repeated advisories to Celsius about the importance of reaching an agreement with the SEC.
Judge Glenn reportedly highlighted that the proposed transformation into a Bitcoin mining business deviates significantly from the deal creditors initially voted on, potentially encountering considerable resistance from creditors.
Celsius recently announced a scaled-back post-bankruptcy strategy, narrowing its focus to Bitcoin mining due to the U.S.
Celsius attorney Chris Koenig reportedly contended during Thursday’s hearing that the court-approved bankruptcy plan allowed the company the flexibility to shift to a mining-exclusive business.
As per the report, two customers, proceeding without legal representation, expressed dissent toward the agreement in the court documents, contending that Celsius should undergo complete liquidation instead.
Related: Celsius grants access to withdrawals for eligible crypto holders