Ethereum

Celsius

Bitcoin

<div class="cryptonews">
 <p class="is-style-lead">Bankrupt crypto lender Celsius claims to have started <a rel="noopener noreferrer nofollow" title="paying" href="https://thebittimes.com/tag/paying.html">paying</a> its <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a> up to $3 billion.</p>
 <p>According to the company’s press release, they are discussing the distribution of cryptocurrency and other assets worth $3 billion among the platform’s <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a>. The payments became part of a plan to reorganize the failed crypto lender.</p>
 <p>The plan includes distributing more than $3 billion to Celsius‘ creditors and creating a new bitcoin mining company, Ionic Digital, Inc., which Celsius’ creditors will own. Hut 8 Corp will manage its mining operations.</p>
 <blockquote class="wp-block-quote">
  <p>“Today, under the MiningCo Transaction, the company has commenced distributions of over $3 billion of liquid cryptocurrency and fiat to <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a>. Ionic Digital was created as a new Bitcoin mining company that will continue to deliver recoveries to <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a>.”</p> <cite>Celsius’ announcement</cite>
 </blockquote>
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 <p>Amid the crypto market’s collapse and depositors’ flight in June 2022, Celsius suspended the withdrawal of funds from client wallets. The company filed for bankruptcy in July. Celsius estimated the hole in its balance sheet to be $1.2 billion and liabilities to <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a> to be $4.7 billion.</p>
 <p>The collapse of Celsius became one of the largest in the cryptocurrency market. Celsius founder Alex Mashinsky has been charged with fraud. He did not admit guilt.</p>
 <p>In late 2023, the Bankruptcy Court in New York approved Celsius Network’s reorganization plan. It involves creating a new company that will only engage in cryptocurrency mining and staking (storage for a fee) to pay off Celsius’ debts. The new company will not be able to accept deposits or issue loans in cryptocurrency, as Celsius did. Celsius’ <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a> will have control over it.</p>
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Celsius restructuring encounters obstacle due to SEC involvement
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/celsius-to-start-paying-over-3b-to-creditors-tbt78470.html">https://thebittimes.com/celsius-to-start-paying-over-3b-to-creditors-tbt78470.html</a></p>

Celsius to start paying over $3b to creditors

TheBitTimes

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