Celsius

United

Bitcoin

David Vance

Billion

Bankrupt cryptocurrency lending company <a href="https://bitcoinist.com/celsius-bankruptcy-chapter-closes-signals-revival/" rel="nofollow">Celsius Network</a> has followed behind FTX, revealing plans to disburse billions of dollars in crypto to creditors and establish a new <a href="https://bitcoinist.com/celsius-bitcoin-mining-plan-on-creditor-vote/" rel="nofollow">Bitcoin mining company</a> for its creditors.&nbsp; 
<h2 id="celsius-to-distribute-3-billion-in-crypto-to-creditors">Celsius To Distribute $3 Billion In Crypto To Creditors</h2> 
In a press release published on Wednesday, Celsius Network <a href="https://www.businesswire.com/news/home/20240131994097/en/Celsius-Emerges-from-Chapter-11-and-Commences-Distributions-of-Over-3-Billion-of-Cryptocurrency-to-Creditors/" rel="nofollow">announced</a> its successful emergence from bankruptcy. The company is now set to implement its “plan of reorganization,” which involves distributing over $3 billion in crypto assets and fiat currency to its creditors.&nbsp; 
<a href="https://bitcoinist.com/celsius-strategy-backed-by-450m-seed-funding/" rel="nofollow">The crypto lending company</a> claimed that the reorganization plan has gained approval by approximately 98% of the company’s account holders. Additionally, Celsius disclosed that the plan has been confirmed and accepted by the Bankruptcy Court of the New York Southern District and the United States Securities and Exchange Commission (SEC).&nbsp; 
Earlier in 2022, <a href="https://bitcoinist.com/celsius-network-ceo-resigns-after-bankruptcy-filing/" rel="nofollow">Celsius filed for bankruptcy</a> in New York after becoming one of the many victims of the <a href="https://bitcoinist.com/crypto-lender-celsius-network-files-for-bankruptcy/" rel="nofollow">crypto market’s dramatic plunge </a>which saw major token prices falling to new lows. Subsequently, the crypto lending platform froze all withdrawals, temporarily shutting off account holder’s access to their savings and funds.&nbsp; 
Now, 18 months after <a href="https://www.newsbtc.com/news/celsius/empty-accounts-discovered-as-celsius-allows-crypto-withdrawals-for-eligible-users/">halting withdrawals, </a>Celsius is finally settled and has initiated steps to <a href="https://bitcoinist.com/celsius-reimbursement-plan/" rel="nofollow">reimburse creditors</a>. The crypto lending platform disclosed plans to boost its cryptocurrency distribution to creditors by almost $250 million. This would involve converting <a href="https://bitcoinist.com/celsius-cleans-house-all-altcoins-to-be-sold/" rel="nofollow">altcoins to Bitcoin (BTC) and Ethereum (ETH).&nbsp;</a> 
“Our exit from bankruptcy is the culmination of an extraordinary team effort and extensive collaboration between Celsius, Hut 8, strategic partners, and our creditors,” Members of the Special Committee of the Board of Celsius, David Barse and Alan Carr stated.&nbsp; 
The conclusion of the long-awaited repayment and the company’s reorganization plans marks a milestone for Celsius as it reflects the organization’s commitment to its creditors. It also underscores its compliance with regulatory obligations and resolvement of intricate legal issues within its business.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter" src="https://www.tradingview.com/x/xqWyXNtE/" alt="Celsius Network CEL price chart from Tradingview.com (FTX Crypto)" width="3266" height="1530"> 
<h2 id="celsius-forges-ahead-with-creation-of-new-bitcoin-mining-company">Celsius Forges Ahead With Creation Of New Bitcoin Mining Company</h2> 
As <a href="https://www.newsbtc.com/news/ethereum/ethereum-faces-market-tremors-as-celsius-offloads-1-billion-in-eth/">Celsius</a> works to disburse $3 billion to its creditors, the crypto lending platform has also announced plans to create a new Bitcoin mining company, Ionic Digital, Inc. The Bitcoin mining company will be owned by <a href="https://bitcoinist.com/celsius-creditors-recoup-up-to-85/" rel="nofollow">Celsius creditors</a>, and mining operations will be managed by Hut 8 Corp, a North American digital asset mining company.&nbsp; 
The objective of the <a href="https://www.newsbtc.com/news/celsius/celsius-networks-shift-towards-bitcoin-mining-plan/">Bitcoin mining company</a> is to consistently provide recoveries to creditors and ensure that the best outcomes are guaranteed for them. After gaining the necessary requisite approvals, Ionic Digital stocks are expected to be publicly traded. Certain shares of the Bitcoin mining company have already been allocated to Celsius creditors.&nbsp;&nbsp; 
Additionally, the Chief Commercial Officer (CCO) of Hut 8, Matt Prusak, will assume the role of Chief Executive Officer (CEO) at Ionic Digital. The publication revealed that he will be working with Celsius’s board of directors appointed by the Official Committee of Unsecured Creditors (UCC).

Celsius Follows FTX As It Begins Repaying Crypto To Creditors, Here’s How Much

Table of Contents

NewsBTC

Other articles published on Feb 1, 2024

Others Are Living Your Dreams: A 17-Year-Old Became a Millionaire After Jupiter (JUP) Airdrop!

‘Treat your first NFT purchase like a first date’ — NFT Collector Suzanne

Bracket Labs Expands Cross-Chain to Deliver Volatility Trading Product, Passage, to BNB Chain’s 1...

Sei Price Prediction: SEI Plummets 10% While This Innovative ICO That Cathie Wood Might Love Race...

Bank Run: US Fed Money Printing & Banking Crisis Is Back, Arthur Hayes’ Bitcoin Prediction

US wants crypto miners to rush through energy use data or risk ‘public harm’

Join our free newsletter for daily crypto updates!