Troubled Crypto Lender Celsius Emerges from Bankruptcy, Plans to Pay Back Creditors
Celsius, a crypto lending platform that faced financial troubles, has announced its successful emergence from bankruptcy and its plan to repay creditors with $3 billion worth of crypto assets and fiat money. The company also intends to establish a new Bitcoin mining firm called Ionic Digital, Inc., which will be under the control of its creditors. The press release states that the plan received approval from 98% of Celsius’ account holders and was confirmed by the Bankruptcy Court for the Southern District of New York. Chris Ferraro, Celsius’ interim CEO and chief restructuring officer, highlighted the company’s commitment to maximizing value and speed in repaying creditors.
Revised Plan Approved After Initial Judge Approval
Celsius had initially received approval for its repayment plan in November last year. At that time, the mining company it proposed to give to creditors was called “NewCo” and focused on Ethereum instead of Bitcoin (BTC). However, after further developments and discussions with stakeholders, Celsius adjusted the plan and obtained final confirmation.
Hot Take: Celsius Rebounds with Repayment Plan
Celsius’ successful emergence from bankruptcy signals a positive turnaround for the troubled crypto lending platform. By securing approval for its repayment plan and committing to distribute $3 billion in crypto assets and fiat money to creditors, Celsius aims to regain stability and rebuild trust among its users. The establishment of Ionic Digital, Inc., as a Bitcoin mining company controlled by creditors, demonstrates Celsius’ efforts to maximize value for those affected by its financial difficulties. This development showcases the resilience of the crypto industry and highlights the importance of transparency and accountability in managing cryptocurrency platforms.
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