Celsius Filed For Bankruptcy And Started Paying Back Creditors More Than $3 Billion

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Celsius

After filing for bankruptcy under Chapter 11 in the US, Celsius plans to open a new bitcoin processing company and begin paying creditors $3 billion in cryptocurrency and cash. The cryptocurrency lender announced in a press release on January 31 that as a result of its bankruptcy departure, Ionic Digital, a $42,934 Bitcoin mining firm led by Hut 8 CCO Matt Prusak, has been established. Its stock is “expected to be traded publicly once the necessary approvals are received,” according to Celsius, who also stated that Ionic Digitial will “continue to deliver recovery to creditors.”

Celsius To Shut Down Entirely By The End Of February

After they stopped deposits in June 2022 and declared bankruptcy just one month later, around 98% of its creditors approved the bankruptcy departure plan. This was more than 18 months ago. Celsius said that by “converting altcoins to ETH or BTC and through previous settlements,” it has raised the total amount of cryptocurrency that was available for distribution to creditors by almost $250 million. Celsius stated in a court document that it will shut down by February 28 and stop using its web and mobile applications. Creditor distributions will be made via Coinbase, PayPal, and Venmo, with some creditors posting a claims form to X.

According to David Barse and Alan Carr, who were on the special board that helped the company through bankruptcy, “Everyone believed that Celsius would vanish entirely, much like the other cryptocurrency lenders who were declaring bankruptcy at the same moment. “Our bankruptcy discharge is the culmination of an amazing team effort.” After the price of its native token, Celsius (CEL), crashed in 2022, the firm stated at the time that it was pausing withdrawals to put itself in a “better position to honor, over time, its withdrawal obligations.”