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After 18 months of the bankruptcy process, crypto lender Celsius Network announced that it had commenced the transfer of nearly $3 billion in cryptocurrencies and fiat to all the creditors of the company. A staggering 98% of the company’s account holders approved these plans as stated by the Bankruptcy court.
Celsius Bankruptcy Team Does A Good Job
This milestone signifies the completion of an eighteen-month process in which the company garnered consensus from various stakeholders, resolved intricate legal matters, fully cooperated with regulatory investigations, and executed transactions under the Plan.
The plan involves distributing over $3 billion in cryptocurrency and fiat to Celsius’ creditors. Furthermore, it involves the establishment of a new Bitcoin mining company, Ionic Digital, Inc., which will be owned by Celsius’ creditors and have its mining operations managed by Hut 8 Corp.
Additionally, the company increased the cryptocurrency available for distribution to creditors by nearly $250 million through altcoin conversions to BTC or ETH and prior settlements. The Bankruptcy Court approved the MiningCo Transaction on December 27, 2023. Speaking on the development, Chris Ferraro, Celsius’ Plan Administrator and former Chief Restructuring Officer said:
“Creating the best outcome for creditors by maximizing value and speed have been front of mind for Celsius throughout this process. Today, over 18 months after Celsius paused withdrawals, we began distributing over $3 billion of cryptocurrency, fiat, and stock in Ionic Digital to Celsius creditors.”
Celsius Transfers Significant Ethereum Holdings
Recent data from Spot on Chain reveals notable movements in Ethereum (ETH) holdings by Celsius over the past two days. Besides, Celsius Networks deposited a total of 67,500 ETH, equivalent to $156.5 million, into Coinbase Prime.
This transaction is part of a larger trend, as the company has shifted a substantial amount of its Ethereum holdings to centralized exchanges (CEX) since November 13, 2023. Thus, the aggregate amount now stands at 847,626 ETH, valued at approximately $1.90 billion.
To ensure timely, secure, and fully compliant distributions, Celsius and its advisors collaborated with the UCC and various federal and state regulatory agencies during its restructuring. The company will now proceed with an organized winding down of its operations, which includes discontinuing the Celsius mobile and web applications.
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