Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Celsius Network’s Chapter 11 Exit and Creditor Plan
News | Release | Feb 5, 2024
Image: Unsplash/David East
Celsius Network announces that it has completed its planned reorganization, distributing over $3 billion to creditors and establishing a new Bitcoin mining entity
Celsius Network's successful emergence from Chapter 11 bankruptcy and the commencement of over $3 billion in distributions signify a major turnaround. The approval of its reorganization plan by an overwhelming majority of its account holders paves the way for a fresh start through the creation of Ionic Digital, Inc., a new Bitcoin mining company owned by the creditors.
See: Celsius Creditors to Return Funds Withdrawn Pre-Bankruptcy
- The reorganization plan received a 98% approval rate on November 9, 2023 from account holders, highlighting strong creditor support.
- Altcoins were converted to BTC or ETH to maximize funds available for distribution to creditors.
- The establishment of a new venture, Ionic Digital, Inc., owned by Celsius creditors, focuses on Bitcoin mining, with plans for the stock to become publicly traded upon receiving necessary approvals. Its mining operations will be managed by Hut 8 Corp.
- Adjustments were made to the plan following feedback from the SEC, ensuring compliance with regulatory standards.
- Following the distributions, Celsius will begin winding down its operations, marking the end of its journey and the start of a new chapter with Ionic Digital.
Outlook
This high profile case in the crypto industry is the potential for recovery even in the face of significant challenges. It also sets a precedent for handling cryptocurrency assets in bankruptcy situations, offering insights and hope for other companies facing similar difficulties.
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