Creditors of crypto lender Celsius have approved a bankruptcy plan allowing them to recoup 67-85% of funds, according to court documents filed by restructuring firm Stretto. The plan still requires court approval at an October 2 confirmation hearing.

Some objections were raised, including from the bankruptcy USD Trustee. But  The U.S. Bankruptcy Court for the Southern District of New York approved holding creditor votes in August, which passed overwhelmingly in favor at over 98%.

The reorganization plan includes selling Celsius assets to crypto consortium Fahrenheit Holdings, comprising Arrington Capital and bitcoin miner U.S. Bitcoin Corp. Fahrenheit won the bid to acquire insolvent Celsius in May.

The creditor approval marks further progress in unwinding one of crypto's highest-profile bankruptcies since the onset of the crypto winter last year. But the judge must still sign off on the proposed resolutions for account holders and creditors affected by Celsius' collapse.

The drawn-out bankruptcy process has been an enduring reminder of the cascading effects of the 2022 crypto downturn. But the end now appears within reach, pending final legal hurdles.