Troubled crypto lending platform Celsius has avoided Chapter 11 bankruptcy with a plan to pay back its creditors billions of dollars.
In a new press release, the embattled crypto firm announced yesterday that it has successfully emerged from bankruptcy with the intention of paying back its creditors $3 billion worth of crypto assets and fiat money.
Furthermore, Celsius also plans to create a new Bitcoin (BTC) mining company – Ionic Digital, Inc. – under its creditors’ control.
According to the press release, the plan was approved by 98% of the company’s account holders and confirmed by the Bankruptcy Court for the Southern District of New York.
“This milestone marks the conclusion of an eighteen-month process during which the Company built consensus among a wide range of stakeholders, resolved complex novel legal issues, fully cooperated with all regulatory investigations, and developed and consummated the transactions under the plan.”
As stated by Chris Ferraro, Celsius’ interim chief executive and current chief restructuring officer,
“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’ plan to pay back its creditors was initially approved by a judge last November. At the time, the mining company it planned to give to creditors was called “NewCo” and dealt with Ethereum (ETH) rather than BTC.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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