Celsius Network Successfully Exits Bankruptcy, Begins $3B Creditor Repayment

Crypto lender Celsius Network LLC CEL/USD has officially emerged from bankruptcy.

What Happened: Up to $3 billion (in liquid cryptocurrency, fiat and Ionic Digital stock) will be repaid to Celsius creditors.

This move follows the approval of the company's reorganization plan by the Bankruptcy Court for the Southern District of New York on Nov. 9, 2023, and marks the end of an 18-month restructuring process.

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The approved plan received overwhelming support from approximately 98% of Celsius' account holders. It includes substantial distributions of cryptocurrency and fiat currency to creditors.

Chris Ferraro, plan administrator and former Chief Restructuring Officer, Interim CEO, and CFO of Celsius, emphasized the company's focus on maximizing value and speed for creditors throughout this process.

Why It Matters: The distribution marks a significant step forward, over 18 months after Celsius halted withdrawals.

David Barse and Alan Carr, members of the Special Committee of the Board of Celsius, highlighted the company's journey through its Chapter 11 process.

They noted the successful navigation of legal, regulatory, and business challenges, including securing cryptocurrency assets, settling with preferred shareholders, and establishing a litigation trust.

What's Next: Following these developments, Celsius will proceed with an orderly wind-down of its operations, including the discontinuation of its mobile and web applications.

Additionally, the wind-down paves the way for the establishment of a new Bitcoin BTC/USD mining entity, Ionic Digital, Inc. This new venture, owned by the creditors of Celsius, will have its mining operations managed by Hut 8 Corp. HUTThe stock of Ionic Digital is anticipated to be publicly traded following the receipt of necessary approvals.

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