Bankrupt virtual currency financing company celsius network Reveals plans to follow FTX and pay billions of dollars in cryptocurrencies to creditors and set up a new financial institution bitcoin mining company For creditors.
Celsius to distribute $3 billion in cryptocurrencies to creditors
According to a press release issued Wednesday, Celsius Network announced Successfully recovered from bankruptcy. The company now plans to implement a “reorganization plan” that will distribute over $3 billion in crypto assets and fiat currency to creditors.
Cryptocurrency lending company The company claimed that the restructuring plan had been approved by about 98% of its account holders. Additionally, Mr. Celsius disclosed that the plan has been reviewed and accepted by the Bankruptcy Court for the Southern District of New York and the U.S. Securities and Exchange Commission (SEC).
At the beginning of 2022, Celsius files for bankruptcy in New York after becoming one of the many victims. Dramatic collapse of the virtual currency market This caused the prices of major tokens to fall to new lows. The crypto lending platform then froze all withdrawals, temporarily cutting off account holders’ access to their savings and funds.
Now, 18 months later, stop withdrawal, Celsius finally calmed down and began the next step. repay creditors.Crypto lending platform reveals plans to strengthen cryptocurrencies Approximately $250 million will be distributed to creditors.This will require a conversion From altcoins to Bitcoin (BTC) and Ethereum (ETH).
“Our emergence from bankruptcy is the culmination of an extraordinary team effort and extensive collaboration between Celsius, Hut8, our strategic partners and creditors,” said Celsius, a member of the Special Committee of the Board of Directors. said David Barth and Alan Carr.
The long-awaited completion of repayments and the company’s restructuring plan represent a milestone for Celsius, reflecting the company’s commitment to its creditors. He also emphasizes meeting regulatory obligations and resolving complex legal issues within the business.
CEL token price falls despite repayment plans | Source: CELUSDT on Tradingview.com
Celsius moves forward with founding new Bitcoin mining company
as Celsius While working on paying $3 billion to creditors, the crypto lending platform also announced plans to form a new Bitcoin mining company, Ionic Digital, Inc. Bitcoin mining company Celsius creditorthe mining operations will be managed by Hut 8 Corp, a North American digital asset mining company.
purpose of bitcoin mining company It is about providing consistent recovery to creditors and ensuring the best outcome for them. After receiving the necessary approvals, Ionic Digital shares are expected to be listed. Some shares of the Bitcoin mining company have already been allocated to Celsius creditors.
In addition, Matt Prusak, Chief Commercial Officer (CCO) of Hut 8, will assume the role of CEO of Ionic Digital. The publication revealed that he will work with Celsius’ board of directors appointed by the Official Committee of Unsecured Creditors (UCC).
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