Celsius Emerges from Bankruptcy, Begins Distributing $3 Billion to Creditors

Celsius Emerges from Bankruptcy, Begins Distributing $3 Billion to Creditors

Crypto News – Celsius, a prominent crypto lending firm, has successfully emerged from bankruptcy and initiated the distribution of assets exceeding $3 billion, encompassing both cryptocurrencies and fiat currencies, to its creditors. This achievement comes after an extensive 18-month period following the company’s Chapter 11 Bankruptcy filing in the United States.

In an official press release issued on a Wednesday, Celsius proudly announced the completion of transactions as per its meticulously devised reorganization plan. Notably, this plan garnered overwhelming support, with an impressive 98% approval rate from the firm’s account holders.

Under the terms of this comprehensive reorganization strategy, Celsius has embarked on the distribution of a staggering $3 billion worth of digital assets and traditional fiat currencies to its creditors. The company further enhanced the available amount to creditors by an additional $250 million through the strategic conversion of altcoins into Bitcoin (BTC) and Ethereum (ETH).

On-chain data corroborates Celsius‘ recent activities, indicating substantial deposits made to various cryptocurrency exchanges in recent months. Analysts from Spot On Chain have suggested that a portion of the $1.9 billion directed to these exchanges may have been absorbed through over-the-counter (OTC) agreements with larger market players.

Celsius‘ bankruptcy resolution plan also encompasses the establishment of a novel Bitcoin mining entity named ‘Ionic Digital.’ This venture will be managed in collaboration with Hut 8, a Nasdaq-listed mining company. The shares of Ionic Digital may potentially become publicly traded, subject to necessary approvals, and will be collectively owned by Celsius’ creditors, holding equity in the form of common stock.

Celsius’ Chief Restructuring Officer and interim CEO expressed, ‘Our paramount focus throughout this process has been to ensure the best possible outcome for our creditors by maximizing value and expediency.’

In a parallel development, it is worth noting that the former CEO of Celsius, Alex Mashinsky, is currently facing charges related to fraud and manipulation, brought forth by the U.S. Department of Justice (DOJ). His criminal trial is scheduled to commence in September of this year.