%Crypto lender %CelsiusNetwork, which is currently in bankruptcy court proceedings, is struggling to transform its business into a %Bitcoin ($BTC) mining operation.
Celsius announced recently that it had reduced its post-bankruptcy business plans to focus only on Bitcoin mining.
However, U.S. Bankruptcy Judge Martin Glenn of New York state, who is overseeing Celsius’ Chapter 11 process, has expressed skepticism about the planned pivot to crypto mining.
“This is not the deal that the creditors voted on,” said the judge in court, adding that the revised deal could face “substantial opposition” from Celsius’ many creditors who are waiting to get paid through the bankruptcy process.
Making matters worse, the U.S. Securities and Exchange Commission (SEC) has not approved the plans by Celsius Network to start mining Bitcoin.
Celsius filed for Chapter 11 bankruptcy protection from its creditors in July 2022, one of several crypto lenders to fail following the rapid growth of the industry during the pandemic.
Celsius has so far found $225 million U.S. in crypto to help pay back its creditors. The company’s lawyers have said that creditors can expect to get about 67% of their funds back from Celsius.
Celsius is proposing that its post-bankruptcy Bitcoin mining operation be managed by U.S. Bitcoin Corp. But it remains unclear whether that will proceed as planed.
The price of Bitcoin is up 132% this year and currently trading at $38,500 U.S.