Celsius Network Completes Transfer of $3 Billion to Creditors
After a year and a half of the bankruptcy process, Celsius Network has successfully transferred nearly $3 billion in cryptocurrencies and fiat to its creditors. The majority of account holders, 98%, approved the plans, according to the Bankruptcy Court.
Achieving Milestones in the Bankruptcy Process
This marks the end of a lengthy process that involved gaining consensus from stakeholders, resolving legal matters, cooperating with regulatory investigations, and executing transactions under the plan. As part of the plan, Celsius will distribute over $3 billion to its creditors. Additionally, a new Bitcoin mining company called Ionic Digital will be established, owned by Celsius’ creditors and managed by Hut 8 Corp.
Increasing Cryptocurrency Availability for Distribution
Celsius increased the cryptocurrency available for distribution by approximately $250 million through altcoin conversions to BTC or ETH and prior settlements. The Bankruptcy Court approved the MiningCo Transaction on December 27, 2023. Chris Ferraro, Celsius’ Plan Administrator and former Chief Restructuring Officer, expressed satisfaction with the outcome:
“Creating the best outcome for creditors by maximizing value and speed have been front of mind for Celsius throughout this process. Today, over 18 months after Celsius paused withdrawals, we began distributing over $3 billion of cryptocurrency, fiat, and stock in Ionic Digital to Celsius creditors.”
Significant Ethereum Movements
Data from Spot on Chain reveals that Celsius recently moved a significant amount of Ethereum (ETH) holdings. Within two days, the company deposited 67,500 ETH (equivalent to $156.5 million) into Coinbase Prime. This is part of a larger trend as Celsius has been shifting a substantial amount of its Ethereum holdings to centralized exchanges since November 13, 2023. The total amount now stands at 847,626 ETH, valued at approximately $1.90 billion.
Ensuring Secure and Compliant Distributions
Celsius and its advisors worked closely with the UCC and various federal and state regulatory agencies to ensure timely, secure, and fully compliant distributions. As part of the winding down process, Celsius will discontinue its mobile and web applications.
Hot Take: Celsius Network Successfully Completes Distribution Process
After an extensive bankruptcy process, Celsius Network has successfully transferred nearly $3 billion to its creditors. This achievement comes after gaining approval from the majority of account holders and resolving legal matters. Celsius also increased cryptocurrency availability for distribution through altcoin conversions and prior settlements. The company has made significant movements in its Ethereum holdings, with a total value of approximately $1.90 billion. Celsius ensured compliance with regulatory agencies throughout the process and will now proceed with winding down its operations.
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