A U.S. bankruptcy judge has approved cryptocurrency lender Celsius Network's pivot to bitcoin mining, ruling that the company could deviate from a previously approved bankruptcy plan because creditors and customers were no worse off under the new restructuring.
U.S. Bankruptcy Judge Martin Glenn in Manhattan says the bankruptcy plan approved in November contained enough flexibility to allow Celsius to switch to a backup plan after it hit a roadblock with the U.S. Securities and Exchange Commission.
Celsius had scaled back broader ambitions to earn fees from validating crypto transactions and start new lines of business after the SEC rejected that plan.
Celsius expects to emerge from bankruptcy in early 2024.