Celsius Network, a crypto lending platform, has emerged from bankruptcy, marking a victory for the company and its investors.
The completion of the confirmed plan of reorganization, approved by 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 restructuring process.
The comprehensive plan entailed reaching an agreement among various stakeholders, resolving complex legal issues, fully cooperating with regulatory investigations, and carrying out transactions under the plan.
A key component of the plan is the distribution of more than $3 billion in crypto and fiat to Celsius’ creditors. In addition, a new Bitcoin mining company, Ionic Digital, Inc., was established by Celsius’ creditors and managed by Hut 8 Corp.
Chris Ferraro, the plan administrator and former Chief Restructuring Officer, interim CEO, and CFO, emphasized the company’s dedication to maximizing value for creditors.
“Today, over 18 months after Celsius paused withdrawals, we began distributing over $3 billion of crypto, fiat, and stock in Ionic Digital to Celsius creditors,” Ferraro said in a statement.
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.