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Celsius Network’s Chapter 11 Exit and Creditor Plan

News | Release | Feb 5, 2024

Unsplash David East emerging out of bankruptcy - Celsius Network's Chapter 11 Exit and Creditor Plan

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See:  Celsius Creditors to Return Funds Withdrawn Pre-Bankruptcy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.


NCFA Jan 2018 resize - Celsius Network's Chapter 11 Exit and Creditor PlanThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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