Joel E. Cohen, a mathematician and biologist representing valuation consultant Stout Risius Ross for Celsius Network, has confirmed the accuracy of the fair value assessment of specific assets and liabilities of the Debtors as of May 31, 2023.
After several months of negotiations and discussions, a majority of Celsius creditors recently approved a Bitcoin and ether return plan valued at approximately $2 billion. This agreement came two days prior to the September 28 court filing confirming the accuracy of the valuation of the debtor's assets and liabilities. Stout specializes in valuing cryptocurrency assets, loans, and alternative investments.
In a statement submitted to the New York Bankruptcy Court, Cohen detailed the methodology used in the valuation analysis and concluded, "Based on the work I have performed and the information and methodologies considered, I believe that the valuation report accurately reflects the fair value of certain of the Debtor’s assets and liabilities as of May 31, 2023."
As per a disclosure statement filed on August 17, roughly $2 billion will be redistributed among creditors, and the restructuring plan will also involve the allocation of equity in a new entity tentatively named "NewCo." In a parallel development, the bankruptcy court in New Jersey approved the liquidation plan for BlockFi, a cryptocurrency lending platform. The amount received by unsecured creditors of BlockFi will be contingent on the outcome of BlockFi's legal actions against FTX and other bankrupt cryptocurrency firms.
