Celsius Emerges from Chapter 11 and Commences Distributions of Over $3 Billion of Cryptocurrency to Creditors
Celsius Network LLC, a leading cryptocurrency platform, has announced its successful emergence from bankruptcy proceedings, marking a significant turning point in the company’s trajectory. The culmination of an arduous eighteen-month journey, Celsius has navigated complex legal and regulatory landscapes to achieve a reorganization plan that benefits its creditors and stakeholders.
The approved plan of reorganization, endorsed by approximately 98% of Celsius’s account holders and sanctioned by the Bankruptcy Court for the Southern District of New York, paves the way for the distribution of over $3 billion in cryptocurrency and fiat to creditors. Moreover, the restructuring initiative includes the establishment of a new entity, Ionic Digital, Inc., dedicated to Bitcoin mining operations.
The journey towards rehabilitation began with Celsius’s commitment to transparency, accountability, and collaboration. Throughout the Chapter 11 process, Celsius engaged with stakeholders, regulatory bodies, and the judiciary to address intricate legal and financial challenges. With strategic foresight and meticulous planning, the company realigned its operations and financial structures to emerge stronger from the restructuring.
The distribution of assets, comprising liquid cryptocurrency, fiat currency, and equity in Ionic Digital, underscores Celsius’s commitment to maximizing value for its creditors. Through prudent decision-making and strategic partnerships, Celsius has unlocked opportunities for creditors to participate in the burgeoning cryptocurrency market.
Chris Ferraro, Plan Administrator and former Chief Restructuring Officer of Celsius, lauded the collective efforts that culminated in the successful reorganization. Ferraro emphasized Celsius’s unwavering dedication to securing creditor interests and facilitating equitable distributions.
David Barse and Alan Carr, members of the Special Committee of the Board of Celsius, reflected on the transformative journey through Chapter 11. They underscored the resilience and determination that propelled Celsius towards a favorable outcome, defying initial apprehensions surrounding the company’s future.
Matt Prusak, Chief Commercial Officer of Hut 8, assumes the role of CEO at Ionic Digital, steering the company towards operational excellence and sustainable growth. With a seasoned leadership team and a clear strategic vision, Ionic Digital is poised to capitalize on emerging opportunities in the Bitcoin mining sector.
As Celsius embarks on a new chapter post-bankruptcy, the company remains committed to transparency, integrity, and customer-centricity. While discontinuing its mobile and web applications, Celsius aims to facilitate an orderly wind-down of operations, ensuring a seamless transition for its user base.
In conclusion, Celsius’s emergence from Chapter 11 underscores the resilience and adaptability inherent in the cryptocurrency ecosystem. With a renewed focus on innovation and value creation, Celsius is poised to chart a course towards sustained growth and prosperity in the digital economy.