Celsius utilized this occasion to introduce Ionic Digital, a novel Bitcoin mining enterprise that will be under the management of Hut 8.
After a successful Chapter 11 bankruptcy in the United States, cryptocurrency lender Celsius has set aside more than $3 billion to repay its creditors. In addition, Celsius used this occasion to introduce Ionic Digital, a brand-new Bitcoin mining company. Around 6 o’clock in the afternoon EST today, the firm made public the news that its restructuring and departure from bankruptcy procedures had been successful.
As a result of its recent bankruptcy, Celsius has added almost $250 million to the pot of digital assets that may be distributed to creditors. Transfers to Bitcoin (BTC) and Ethereum (ETH) and prior settlement agreements made this possible.
According to David Barse and Alan Carr, who are members of the Celsius reorganization board, “everyone expected Celsius would disappear completely like the other crypto lenders.”
The refund of almost $3 billion to creditors will now be initiated by the corporation. One million plus retail customers that used the Celsius platform fall into this category. The exact facts of the distribution methods and schedule will likely be revealed in the weeks to come. According to Celsius, disbursements have been facilitated by coordination with federal and state regulatory organizations and the Official Committee of Unsecured Creditors (UCC).
As a result of “extreme market conditions,” Celsius temporarily halted all account withdrawals, swaps, and inter-account transfers in June 2022, garnering considerable attention. Celsius’ native token (CEL) continued to fall after a month, prompting the company to declare bankruptcy. Many individual crypto investors were left high and dry by this move, which was a pivotal moment in the current crypto market fall.
The crypto loan and savings account management platform Celsius is now shutting down and will no longer be available on mobile or the web. A small internet presence will be maintained by the firm to help creditors and offer progress updates during the distribution, according to the corporation.
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