Celsius Follows FTX As It Begins Repaying Crypto To Creditors, Here’s How Much
01 Februar 2024 - 2:30PM
NEWSBTC
Bankrupt cryptocurrency lending company Celsius Network has
followed behind FTX, revealing plans to disburse billions of
dollars in crypto to creditors and establish a new Bitcoin mining
company for its creditors. Celsius To Distribute $3 Billion
In Crypto To Creditors In a press release published on Wednesday,
Celsius Network announced its successful emergence from bankruptcy.
The company is now set to implement its “plan of reorganization,”
which involves distributing over $3 billion in crypto assets and
fiat currency to its creditors. Related Reading: Crypto
Analyst Predicts Shiba Inu Price To Surge Above $0.00001 The crypto
lending company claimed that the reorganization plan has gained
approval by approximately 98% of the company’s account holders.
Additionally, Celsius disclosed that the plan has been confirmed
and accepted by the Bankruptcy Court of the New York Southern
District and the United States Securities and Exchange Commission
(SEC). Earlier in 2022, Celsius filed for bankruptcy in New
York after becoming one of the many victims of the crypto market’s
dramatic plunge which saw major token prices falling to new lows.
Subsequently, the crypto lending platform froze all withdrawals,
temporarily shutting off account holder’s access to their savings
and funds. Now, 18 months after halting withdrawals, Celsius
is finally settled and has initiated steps to reimburse creditors.
The crypto lending platform disclosed plans to boost its
cryptocurrency distribution to creditors by almost $250 million.
This would involve converting altcoins to Bitcoin (BTC) and
Ethereum (ETH). “Our exit from bankruptcy is the culmination
of an extraordinary team effort and extensive collaboration between
Celsius, Hut 8, strategic partners, and our creditors,” Members of
the Special Committee of the Board of Celsius, David Barse and Alan
Carr stated. The conclusion of the long-awaited repayment and
the company’s reorganization plans marks a milestone for Celsius as
it reflects the organization’s commitment to its creditors. It also
underscores its compliance with regulatory obligations and
resolvement of intricate legal issues within its business.
CEL token price falls despite repayment plans | Source: CELUSDT on
Tradingview.com Celsius Forges Ahead With Creation Of New Bitcoin
Mining Company As Celsius works to disburse $3 billion to its
creditors, the crypto lending platform has also announced plans to
create a new Bitcoin mining company, Ionic Digital, Inc. The
Bitcoin mining company will be owned by Celsius creditors, and
mining operations will be managed by Hut 8 Corp, a North American
digital asset mining company. Related Reading: Analyst
Compared Solana To Ethereum ICO Boom, What Does This Mean For SOL
Price? The objective of the Bitcoin mining company is to
consistently provide recoveries to creditors and ensure that the
best outcomes are guaranteed for them. After gaining the necessary
requisite approvals, Ionic Digital stocks are expected to be
publicly traded. Certain shares of the Bitcoin mining company have
already been allocated to Celsius creditors.
Additionally, the Chief Commercial Officer (CCO) of Hut 8, Matt
Prusak, will assume the role of Chief Executive Officer (CEO) at
Ionic Digital. The publication revealed that he will be working
with Celsius’s board of directors appointed by the Official
Committee of Unsecured Creditors (UCC). Featured image from
Bitcoinist, chart from Tradingview.com
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