Crypto lender Celsius (CRYPTO: CEL) saw its CEL token trade 27% higher, taking its seven-day trading gain to 39%, on the heels of a dramatic bankruptcy case.

What Happened: Market cap and trading volume in the past 24 hours increased 27% and 20%, respectively.

The momentum came as Chief Judge Martin Glenn of the U.S. Southern District of New York Bankruptcy Court confirmed a reorganization plan.

Celsius will return 67%-85% of holdings to creditors, CoinDesk reports.

Customers with funds tied up in Celsius will receive about 25 cents per CEL token.

Fahrenheit Holdings, a group that includes Arrington Capital and U.S. Bitcoin Corp, will oversee the proposed plan, which received majority support from creditors.

Read Next: Celsius's Successor Aims To Revive Crypto Lender - What Does That Mean For Creditors?

Former Celsius CEO Alex Mashinsky, who was arrested in July, was released on a $40 million bond while his banking and real estate assets were frozen.

His trial is scheduled for September 2024.

Why It Matters: Delaware-based NewCo, the newly created company for reorganization, will focus on activities like mining and staking.

This marks a strategic business shift in focus for the restructured firm.

It will have a $1.25 billion balance sheet and it plans to stake some or all this Liquid Cryptocurrency to earn staking yields on the Ethereum network. This would lead to yield generation of $10 to $20 million annually.

The deal terms highlight individual custody account holders to receive their assets in two distributions — the first tranche would be distributed upfront, and the second installment is set to be paid by the end of the year on plan resolution.

Also Read: Celsius Network's New Lease on Life — Judge Greenlights Crypto Miner Transformation

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