Celsius to Distribute $3 Billion in Crypto to Creditors
Celsius Network, a bankrupt cryptocurrency lending company, has announced its successful emergence from bankruptcy and plans to distribute over $3 billion in crypto assets and fiat currency to its creditors. The company’s reorganization plan has gained approval from 98% of its account holders and has been confirmed by the Bankruptcy Court of the New York Southern District and the SEC.
Reimbursement for Creditors after 18 Months
After halting withdrawals for 18 months, Celsius is now settled and will begin reimbursing its creditors. The platform plans to convert altcoins to Bitcoin and Ethereum in order to boost cryptocurrency distribution by almost $250 million. This marks a milestone for Celsius as it demonstrates the organization’s commitment to its creditors and compliance with regulatory obligations.
Celsius Plans to Establish a Bitcoin Mining Company
In addition to distributing funds, Celsius has announced plans to create a new Bitcoin mining company called Ionic Digital, Inc. This company will be owned by Celsius creditors and managed by Hut 8 Corp. The objective of the mining company is to provide recoveries to creditors and ensure favorable outcomes for them. Certain shares of Ionic Digital have already been allocated to Celsius creditors, and the Chief Commercial Officer of Hut 8 will serve as CEO of Ionic Digital.
Hot Take: Celsius Emerges Stronger with Distribution and Mining Plans
The successful emergence from bankruptcy, distribution of funds, and establishment of a Bitcoin mining company mark a significant turning point for Celsius Network. By prioritizing the reimbursement of creditors, Celsius demonstrates its commitment to resolving legal issues and fulfilling its obligations. The creation of Ionic Digital further strengthens Celsius’s position in the crypto market and provides additional opportunities for creditors. With these strategic moves, Celsius shows its determination to recover and thrive in the industry.
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