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Home ยป Celsius Network begins paying out $3 billion following its Chapter 11 bankruptcy.

Celsius Network begins paying out $3 billion following its Chapter 11 bankruptcy.

The authorized restructuring plan states that creditors will receive cryptocurrency, fiat, and common equity in a new bitcoin mining firm called Ionic Digital.

by V. Sinclair
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Eighteen months after it halted user withdrawals, Celsius Network formally resolved its Chapter 11 bankruptcy on Wednesday and began distributing $3 billion worth of bitcoin and fiat to its creditors.

According to Celsius’ announcement on Wednesday, a part of the $3 billion would be used to launch Ionic Digital, a new bitcoin mining business owned by creditors, as part of the company’s authorized reorganization plan.

Common shares, which are anticipated to be publicly traded if the firm obtains the required permissions, will be owned by Celsius creditors and form the basis of the mining company. Under a four-year management arrangement, Ionic’s mining operations will be managed by Miami-based Hut 8.

Celsius intends to shut down its mobile and web platforms as part of the transition and begin to phase out its operations.

in July 13, 2022, Celsius filed for bankruptcy due to a $1.2 billion imbalance in its balance sheet.

Several regulatory bodies, including the Securities and Exchange Commission, the Federal Trade Commission, and the Commodity Futures Trading Commission, sued Celsius and its founder and former CEO, Alex Mashinsky, last year for allegedly deceiving clients. Mashinsky was accused with fraud as well. September is when his trial is supposed to begin.

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