Celsius Starts Repaying Its Creditors

Celsius Network happily announced its successful exit from bankruptcy today. This good news comes after completing transactions under an approved plan, with a whopping 98% approval from account holders.

The Bankruptcy Court for the Southern District of New York confirmed the plan on November 9, 2023, marking the end of an eighteen-month process. During this time, Celsius worked together with different groups, dealt with complex legal matters, cooperated with investigations, and carried out transactions according to the plan.

The plan includes giving over $3B in cryptocurrency and regular money to Celsius' creditors. They're also starting a new Bitcoin mining company called Ionic Digital, Inc. It'll be owned by Celsius' creditors and managed by Hut 8 Corp.

After confirming the plan and getting feedback from the Securities and Exchange Commission, Celsius, along with the Official Committee of Unsecured Creditors, switched to the "MiningCo Transaction." They increased the cryptocurrency available for distribution by nearly $250M, simply by changing their altcoins to Ethereum and Bitcoin.

On December 27, 2023, the Bankruptcy Court gave the thumbs up to the MiningCo Transaction. Today, Celsius has begun giving over $3B in liquid cryptocurrency and regular money to creditors. Ionic Digital will soon be publicly traded once they get the necessary approvals. Celsius' creditors will own a part of Ionic Digital.

This news comes as the crypto lender has been moving large amounts of Ethereum to Coinbase and Paxos. As of today, they've sent over ~$2.8B worth of $ETH to different platforms, getting ready for the distribution to start.

The remaining $159M worth of crypto on Celsius' accounts is mostly in $CEL, their own token. This token won't be given out to the creditors…