Celsius Network emerges from bankruptcy, distributing $3 billion to creditors.
Spot On Chain reports Celsius’ $156.5 million ETH deposit to Coinbase Prime.
Celsius Network LLC, a prominent cryptocurrency lending platform, has successfully emerged from bankruptcy, signaling a triumph for the company and its stakeholders. The completion of the confirmed plan of reorganization, approved by an overwhelming 98% of the Company’s account holders and confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023, marks the end of an eighteen-month-long restructuring process.
The comprehensive plan involved building consensus among diverse stakeholders, resolving intricate legal issues, cooperating fully with regulatory investigations, and executing transactions under the plan. The key highlights of the plan include the distribution of over $3 billion in cryptocurrency and fiat to Celsius’ creditors. And the establishment of a new Bitcoin mining company, Ionic Digital, Inc., owned by Celsius’ creditors and managed by Hut 8 Corp.
Moreover, Chris Ferraro, Plan Administrator and former Chief Restructuring Officer, Interim CEO, and CFO, emphasized the company’s commitment to maximizing value for creditors. “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,” Ferraro stated.
Whats Further?
To facilitate secure and compliant distributions, Celsius collaborated with the Official Committee of Unsecured Creditors, federal and state regulatory agencies. The newly formed Ionic Digital is set to become a publicly traded Bitcoin mining company once regulatory approvals are secured.
Matt Prusak, Chief Commercial Officer of Hut 8, has been named CEO of Ionic Digital. He oversees its Bitcoin mining business under a four-year management agreement. Meanwhile, Celsius will initiate an orderly wind-down of its operations, discontinuing its mobile and web applications.
Meanwhile, Spot On Chain reported that Celsius made a significant deposit of 67,500 ETH to Coinbase Prime. Totaling approximately $156.5 million, further underlining the company’s commitment to its restructuring and prospects.