Celsius Network Emerges from Bankruptcy and Plans to Pay Creditors
Celsius Network, a cryptocurrency platform, has successfully emerged from bankruptcy and is now preparing to distribute over $3 billion worth of cryptocurrency and fiat currency to its creditors. As part of the bankruptcy plan, a new Bitcoin mining company called “Ionic Digital” will be established, fully owned by Celsius’ creditors. Hut 8 Corp., a company listed on Nasdaq, will manage the mining operations for Ionic Digital, with Matt Prusak appointed as the CEO. This plan has been approved by 98% of Celsius Network’s account holders.
Former CEO Released on $40M Bond
Last year, the former CEO of Celsius Network, Alex Mashinsky, was granted bail at $40 million after being charged with fraud. Mashinsky pleaded not guilty to allegations of artificially inflating the value of CEL token and deceiving customers. The chief revenue officer of Celsius, Roni Cohen-Pavon, also faced similar charges. In January, Mashinsky requested that the court dismiss charges related to commodities fraud and market manipulation, citing the uncertain classification of crypto assets by the US government.
Celsius Wallet Activity Increases
Analysts have observed increased activity in Celsius wallets recently. One on-chain analytics platform noted that a Celsius wallet made transfers to crypto exchanges. Specifically, the wallet deposited 13,000 Ether tokens (equivalent to $30.34 million) into the Coinbase trading platform. According to Spot on Chain, Celsius has moved a significant amount of ETH to various exchanges since November 2023.
Hot Take: Celsius Distributes Over $3 Billion in Crypto and Fiat
Celsius Network has successfully emerged from bankruptcy and is now fulfilling its plan to distribute over $3 billion worth of cryptocurrency, fiat currency, and stock in Ionic Digital to its creditors. This marks a significant milestone for the platform and its account holders who have patiently awaited the resumption of withdrawals. With the establishment of Ionic Digital and Hut 8 Corp.’s management of the mining operations, Celsius is taking steps towards recovery and future growth. The increased activity in Celsius wallets also indicates renewed confidence and engagement from users. As Celsius continues to navigate legal challenges and rebuild its reputation, it remains a key player in the crypto industry.
By
By
By
By