Celsius Network Successfully Distributes Over $3 Billion to Creditors
After a long and complex bankruptcy process, Celsius Network, a troubled crypto lender, has successfully distributed assets worth more than $3 billion to its creditors. This involved collaborating with regulatory authorities and implementing innovative approaches such as alternative settlement agreements and converting less liquid altcoins into major cryptocurrencies like Bitcoin and Ethereum.
Majority of Account Holders Approve Distribution Plan
Celsius achieved a significant milestone by securing nearly unanimous approval from account holders who were owed funds. The distribution plan involved transferring over $3 billion in cryptocurrencies and fiat currencies to the creditors. As part of this process, a new entity called Ionic Digital emerged, dedicated to Bitcoin mining, with ownership shared among creditors and operational management entrusted to Hut 8.
Expediting Distribution Through Liquidation of Ethereum Holdings
To expedite the timely distribution, Celsius liquidated a substantial portion of its Ethereum holdings. Approximately 67,500 ETH tokens, equivalent to $157 million, were deposited at Coinbase’s institutional trading division. Furthermore, Celsius transferred around 18,000 ETH tokens from their reserves to Coinbase, representing a transfer of approximately $40 million worth of cryptocurrency.
Liquidating Cryptocurrencies on Exchanges Streamlines Payout Process
Celsius strategically liquidated significant amounts of Ether and other cryptocurrencies directly on exchanges to streamline the payout process for creditors. Over 847,600 ETH tokens, valued at nearly $2 billion, were transferred from various digital wallets to centralized trading platforms like Coinbase.
Celsius Ensures Compliance with Regulatory Bodies
Celsius worked closely with federal and state regulatory bodies to ensure that the distributions adhered to full compliance standards. With the conclusion of distributions and winding down operations, Celsius can finally put an end to its tumultuous journey.
Company Prioritizes Creditors’ Best Interests
Celsius’ Plan Administrator and former Chief Restructuring Officer, Chris Ferraro, emphasized that the company has prioritized creditors’ best interests by maximizing value and speed throughout the process. Although creditors may not recoup their full sums, the thorough administration of the bankruptcy proceedings has left the majority satisfied.
Celsius Mobile App and Website Permanently Shut Down
The Celsius mobile app and website, which played a crucial role in the company’s business model, will be permanently shut down. While lessons have been learned from this experience, the cryptocurrency industry as a whole can now focus on rebuilding trust and creating a more resilient ecosystem.
Hot Take: Celsius Network Successfully Distributes Over $3 Billion to Creditors
After a challenging 18-month journey through bankruptcy proceedings, Celsius Network has successfully distributed assets worth over $3 billion to its creditors. This achievement was made possible through collaboration with regulatory authorities and innovative approaches. The majority of account holders approved the distribution plan, which involved transferring funds in cryptocurrencies and fiat currencies. Celsius liquidated a substantial portion of its Ethereum holdings to expedite the distribution process. The company worked closely with regulatory bodies to ensure compliance. Although creditors may not recoup their full sums, Celsius prioritized their best interests throughout the process. The closure of the Celsius mobile app and website marks the end of a tumultuous period for the company. The cryptocurrency industry can now focus on rebuilding trust and fostering resilience.
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