Celsius Starts Paying $3 Billion in Crypto and Fiat to Creditors
Following an 18-month bankruptcy process, crypto lender Celsius Network announced that it has begun transferring approximately $3 billion worth of cryptocurrency and fiat to all of the company’s creditors. As the bankruptcy court noted, a staggering 98% of the company’s account holders approved these plans.
Celsius Insolvency Team Does a Good Job
This milestone marks the completion of an eighteen-month process in which the company sought consensus from a variety of stakeholders, resolved complex legal issues, fully cooperated with regulatory investigations, and conducted transactions under the Plan.
The plan involves distributing over $3 billion in cryptocurrencies and fiat to Celsius’ creditors. It will also be owned by Celsius’ creditors and its mining operations will be owned by Hut 8 Corp. It includes the establishment of a new Bitcoin mining company, Ionic Digital, Inc., which will be managed by Ionic Digital, Inc.
Additionally, the company raised approximately $250 million in cryptocurrency that can be distributed to creditors through the conversion of altcoins into BTC or ETH and previous payments. The Bankruptcy Court approved the MiningCo Transaction on December 27, 2023. Speaking about the development, Celsius Plan Manager and former Restructuring Director Chris Ferraro said:
Celsius Transfers Significant Ethereum Assets
The latest data from Spot on Chain reveals notable movements in Celsius’ Ethereum (ETH) assets over the past two days. Additionally, Celsius Networks deposited a total of 67,500 ETH into Coinbase Prime, equivalent to $156.5 million.
This transaction is part of a larger trend as the company has shifted a significant portion of its Ethereum holdings to centralized exchanges (cex) since November 13, 2023. Thus, the total amount currently stands at 847,626 ETH, worth approximately $1.90 billion.
To ensure that deployments were timely, secure and fully compliant, Celsius and its consultants collaborated with the UCC and various federal and state regulatory agencies during the UCC restructuring. The company will now continue to terminate its operations in an organized manner, including discontinuing Celsius mobile and web applications.
✓ Share:
Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Celsius #Starts #Paying #Billion #Crypto #Fiat #Creditors
