Crypto lender Celsius Network LLC CEL/USD has successfully emerged from bankruptcy, marking the end of an 18-month restructuring process.
Up to $3 billion (in liquid cryptocurrency, fiat, and Ionic Digital stock) will be repaid to Celsius creditors following the approval of the company’s reorganization plan by the Bankruptcy Court for the Southern District of New York on Nov. 9, 2023.
The plan received overwhelming support from approximately 98% of Celsius’ account holders and includes significant distributions of cryptocurrency and fiat currency to creditors, showcasing a crucial step forward since Celsius halted withdrawals over 18 months ago.
Chris Ferraro, plan administrator and former Chief Restructuring Officer, Interim CEO, and CFO of Celsius, emphasized the company’s focus on maximizing value and speed for creditors throughout this process.
David Barse and Alan Carr, members of the Special Committee of the Board of Celsius, highlighted the successful navigation of legal, regulatory, and business challenges, securing cryptocurrency assets, settling with preferred shareholders, and establishing a litigation trust.
Following these developments, Celsius will proceed with an orderly wind-down of its operations, including the discontinuation of its mobile and web applications. Moreover, the wind-down will pave the way for the establishment of a new Bitcoin BTC/USD mining entity, Ionic Digital, Inc., owned by the creditors of Celsius. This new venture will have its mining operations managed by Hut 8 Corp. HUT. The stock of Ionic Digital is anticipated to be publicly traded following the receipt of necessary approvals.