Celsius

The firm stated that PayPal and Coinbase will handle the <a href="https://financefeeds.com/celsius-and-ftx-move-crypto-to-exchanges-to-repay-creditors/" rel="noopener noreferrer nofollow">distribution of cryptocurrencies</a> to its creditors. The development comes following a challenging period marked by paused user withdrawals and significant financial turmoil.
In addition to the cash distribution, creditors are set to receive stakes in Ionic Digital Inc., a <a href="https://financefeeds.com/celsius-shift-to-bitcoin-mining-approved-by-u-s-bankruptcy-judge/" rel="noopener noreferrer nofollow">new bitcoin mining operation</a>. Approximately 98% of Celsius Network's creditors approved the reorganization plan, which includes the establishment of Ionic Digital. This new entity, owned by the creditors, is expected to become a publicly traded company pending necessary regulatory approvals.
Miami-based crypto miner Hut 8 will manage Ionic's operations under a four-year agreement and its chief commercial officer Matt Prusak has been named the CEO.
“When we were appointed in June 2022, everyone assumed Celsius would disappear completely like the other crypto lenders that were filing bankruptcy around the same time,” the special board committee that managed the bankruptcy said.
As part of the transition, <a href="https://financefeeds.com/celsius-moves-large-ether-amounts-to-exchanges-for-creditor-repayment/" rel="noopener noreferrer nofollow">Celsius</a> is phasing out its business operations, including the shutdown of its mobile and web applications. The company declared bankruptcy on July 13, 2022, after revealing a $1.2 billion gap in its balance sheet.
Throughout the bankruptcy process, Celsius faced several legal challenges. Last year, it was sued by various regulators, including the Securities and Exchange Commission (SEC), the Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC), for allegedly misleading customers. Its founder and former CEO Alex Mashinsky was also charged with fraud. He was released on a $40 million bond, with his assets frozen, and his trial is set for September 2024.
In addition to resolving the bankruptcy, Celsius managed to secure a settlement with U.S. authorities over fraud allegations, amounting to $4.7 billion. Interestingly, the&nbsp;<a href="https://financefeeds.com/celsius-liquidators-seek-fund-return-from-large-withdrawals/" rel="noopener noreferrer nofollow">Celsius bankruptcy administrators</a>&nbsp;told creditors that account holders who withdrew over $100,000 in the 90 days before the firm’s bankruptcy declaration on July 13, 2022, might need to return those funds by January 31, 2024.

Celsius distributes $3 billion to creditors via PayPal and Coinbase

FinanceFeeds

Other articles published on Feb 1, 2024

Significant Developments in XRP Theft: Binance Takes Action

Bitcoin’s Price Dynamics: Analyzing Market Indicators and Whale Activity

NFTScan Now Supports Mantle Network for Both NFTScan Explorer and NFTScan API

Chainlink Flashes Bullish “Launch Sequence”: But Can LINK Overcome This Key Resistance?

El Salvador President Nayib Bukele Eyes Bitcoin-Backed Bonds, Bitcoin Cities in Re-election Bid

Heroes of Mavia Launches It’s Anticipated Game on iOS and Android with Exclusive Mavia Airdrop Pr...

Join our free newsletter for daily crypto updates!