Celsius will ship more than $3 billion to its creditors as the company's bankruptcy has been officially closed.
Aside from the cash, creditors will receive a stake in mining company Ionic Digital Inc. The newly formed company said in a statement on Wednesday. About 98% of Celsius Network's creditors signed on to the plan after 18 months in bankruptcy court. Ionic is expected to become a publicly traded company once it receives approvals.
“When we were appointed in June 2022, everyone assumed that Celsius would disappear just like other cryptocurrency lenders who were declaring bankruptcy around the same time,” said David Parse and Alan Carr, members of the special board committee that led the bankruptcy process. statement.
They said they were able to secure cryptocurrency for the platform, negotiate a deal with creditors, reorganize the part of the company that can continue and settle issues with the US Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
In a separate filing, the company said PayPal and Coinbase will distribute the cryptocurrencies. Celcium will not make any distributions through the Debtors' mobile or web applications, which will close on or about February 28.
The bankruptcy of cryptocurrency lender Celsius also saw a $4.7 billion settlement with US authorities over fraud allegations. Former CEO Alex Mashinsky – who resigned in September 2022 – was arrested on fraud charges for allegedly manipulating the price of the lender's CEL token, an allegation he denied.
Mashinsky was released on $40 million bond, and the court ordered his banking and real estate assets frozen. His trial is scheduled for September 2024.
