By: Isha Das
After its successful emergence from bankruptcy, Celsius Network has revealed plans to distribute more than $3 billion in cryptocurrency and fiat assets to its creditors. The disbursal plan was highly approved by account holders (~98%), the Bankruptcy Court of the New York Southern District, and the U.S Securities and Exchange Commission (SEC).
Celsius Network, a cryptocurrency lending platform, filed for bankruptcy in New York earlier in 2022 due to a significant downturn in the crypto market that led to a dramatic drop in token prices. During this period, the platform had to freeze withdrawals, hence denying account holders access to their savings and funds. Nevertheless, 18 months later, the platform has begun reimbursing creditors with a strategy that includes boosting crypto distribution by nearly $250 million via conversion of altcoins into Bitcoin (BTC) and Ethereum (ETH).
In addition to this, Celsius also plans to establish a Bitcoin mining company named Ionic Digital, Inc., owned by its creditors. The mining operations will be overseen by Hut 8 Corp, a North American digital asset mining company. This move is meant to continuously provide recoveries to creditors and guarantee their best outcomes. Upon securing necessary approvals, shares of Ionic Digital are expected to be publicly traded, with some shares already allocated to Celsius creditors.
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