Celsius has emerged from 18 months of bankruptcy
Celsius has emerged from 18 months of bankruptcy
Cryptocurrency lender Celsius Network has announced that it has emerged from a year and a half of bankruptcy. The company has begun paying its creditors and has listed 67,500 ETH worth $156.5 million on the Coinbase exchange in the last two days.
The company is preparing to repay creditors nearly $3 billion in cryptocurrency and fiat funds.
According to the bankruptcy court, nearly 98% of the company's account holders have approved the plan that has been worked out, CoinGape reported.
On its official X page, Celsius announced the end of the bankruptcy process, saying it had done a good job. The company was able to reconcile issues and get all stakeholders to agree, fully cooperated with regulators in their investigations, resolved legal issues, and moved to make payments according to the plan that was developed.
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Celsius creditors will receive more than $3 billion in cryptocurrency and fiat as part of the plan. A new mining company, Ionic Digital, will also be established under Hut 8 Corp., which will be owned by Celsius creditors. Proceeds from Bitcoin mining will be used to make the remaining payments to creditors. At the time of the initial bankruptcy filing, Celsius owed creditors more than $4.7 billion.
Celsius stated, "Ionic Digital will be established as a new Bitcoin mining company that will repay creditors. Ionic Digital's shares are expected to be publicly traded once the necessary approvals are obtained."
In an effort to increase its assets, the company converted altcoins into BTC or ETH, which increased its capital by $250 million.
Former Restructuring Director and Celsius Plan Administrator Chris Ferraro commented, "Securing the best outcome for creditors was achieved through asset maximization and speed. Today, 18 months after the redemption ban, Celsius has begun reimbursing creditors for over $3 billion in cryptocurrency, fiat funds, and Ionic Digital stock."
Celsius conducted transactions to withdraw a significant amount of Ethereum from the exchange, which were recorded by the Spot on Chain analytics platform. Celsius Networks has deposited 67,500 ETH worth $156.5 million into Coinbase Prime.
The company has also reportedly moved a significant portion of its assets to centralized exchanges (CEXs) since November 2023, which now total 847,626 ETH (about $1.90 billion).
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