TRENDING

Home ยป Celsius Emerges from Chapter 11 with $3 Billion Cryptocurrency Distribution

Celsius Emerges from Chapter 11 with $3 Billion Cryptocurrency Distribution

Celsius Network LLC successfully concludes bankruptcy proceedings, commences distributions.

by Alexander
0 comment

After an arduous eighteen-month journey, Celsius Network LLC, a prominent cryptocurrency lending platform, has successfully emerged from bankruptcy proceedings. The company announced the completion of transactions outlined in its reorganization plan, paving the way for the distribution of over $3 billion worth of cryptocurrency and fiat to its creditors. This significant milestone marks the culmination of extensive efforts to navigate legal complexities, regulatory scrutiny, and stakeholder collaboration.

Plan Approval and Implementation

Celsius’ reorganization plan, which garnered overwhelming support from approximately 98% of the company’s account holders, was confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023. The plan includes the distribution of liquid assets to creditors and the establishment of a new Bitcoin mining entity, Ionic Digital, Inc., owned by Celsius’ creditors. Notably, the plan underwent modifications following feedback from the Securities and Exchange Commission (SEC) and was subsequently approved by the Bankruptcy Court on December 27, 2023.

Distribution Process Commences

Today, pursuant to the MiningCo Transaction, Celsius has initiated the distribution of over $3 billion in liquid cryptocurrency and fiat to creditors. Simultaneously, Ionic Digital, the newly established Bitcoin mining company, is expected to be publicly traded once necessary approvals are obtained.

Achievements and Reflections

Chris Ferraro, Plan Administrator and former executive at Celsius, emphasized the company’s commitment to maximizing value and expediting the distribution process for creditors. Reflecting on the journey, David Barse and Alan Carr, members of the Special Committee of the Board of Celsius, highlighted the collaborative efforts that enabled Celsius to navigate multifaceted challenges and achieve a favorable outcome. Despite initial doubts, Celsius’ perseverance led to key milestones, including asset preservation, regulatory settlements, and enhanced recovery for customers and claim holders.

Operational Transition

With the conclusion of the bankruptcy proceedings, Celsius will initiate an orderly wind down of its operations, including discontinuing its mobile and web applications. Matt Prusak, Chief Commercial Officer at Hut 8, has been appointed CEO of Ionic Digital, tasked with overseeing the company’s Bitcoin mining operations under a four-year management agreement. Further details regarding Ionic Digital’s operations will be forthcoming as the company progresses.

Regulatory Compliance and Coordination

Throughout the restructuring process, Celsius and its advisors have prioritized compliance with regulatory requirements, collaborating closely with the Official Committee of Unsecured Creditors (UCC) and relevant federal and state regulatory agencies.

Celsius’ successful emergence from bankruptcy marks a significant milestone in its journey, showcasing resilience, collaboration, and commitment to creditor interests.

Related Posts :

footer logo

@2023 – All Right Reserved.

Incubated bydesi crypto logo