Celsius Network Officially Exits Bankruptcy, Set to Return $3B to Users

🚀 Stay Ahead with AltcoinDaily.co! 🌐

Celsius Network, a crypto lending platform that filed for bankruptcy in 2022, has officially exited bankruptcy and is now set to return over $3 billion in crypto and fiat to its users that were affected by the sudden halting of withdrawals announced by the firm in early 2022. 

As per a press release published by the company, Celsius confirmed that its exit from bankruptcy will see the creation of a new Bitcoin mining company managed by crypto mining firm Hut 8 called Ionic Digital, Inc.

Celsius Network Exits Bankruptcy

According to the release, the new Bitcoin mining firm will be headed by Hut 8 Chief Commercial Officer Matt Prusak. 

  🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

“This milestone marks the conclusion of an eighteen-month process during which the Company built consensus among a wide range of stakeholders, resolved complex novel legal issues, fully cooperated with all regulatory investigations, and developed and consummated the transactions under the Plan,” the firm said.

Delivering Creditors

Celsius also added that the new Bitcoin mining firm will “continue to deliver recoveries to creditors” and that its stock is “expected to be publicly traded once the requisite approvals are received.”

As reported earlier by TheCoinRise, creditors of the defunct crypto lender supported the proposal for reorganization back in September 2023, with over 98% of votes in favor of the plan. 

Celsius Converted Altcoins to BTC and ETH

Celsius added in the statement that it increased the amount of crypto available for distribution to creditors by around $250 million by “converting altcoins to BTC or ETH and through previous settlements.”

David Barse and Alan Carr, members of the Special Committee of the Board of Celsius, noted that the firm “achieved a settlement with the preferred shareholders, ran a successful auction of the one recognizable operating business to begin as a new Bitcoin mining company, established a litigation trust to pursue the innumerable counterparties that exploited Celsius, and, possibly most importantly, settled with the DOJ, SEC, and CFTC” under their management. 

Winding Down Operations

According to a court filing, Celsius has decided to wind down operations and discontinue its mobile and web applications by February 28, adding that the distribution of money to creditors will be made via PayPal, Venmo, and Coinbase, the largest digital asset trading platforms in the United States.

“Everyone assumed Celsius would disappear completely like the other crypto lenders that were filing bankruptcy around the same time,” Barse and Carr noted, while adding:

“Our exit from bankruptcy is the culmination of an extraordinary team effort.”

 🔍 Your Crypto News Hub: AltcoinDaily.co! 🌐