Celsior plans to repay more than $3 billion to creditors now that its bankruptcy proceedings have officially ended.
Apart from the cash, creditors will receive a stake in the newly formed mining business of Ionic Digital Inc., the company said in a statement Wednesday. Approximately 98% of Celsius Network's creditors agreed to the plan after 18 months in bankruptcy court. Ionic plans to become a publicly traded company if it passes approval.
“When we were appointed in June 2022, everyone thought Celsius would disappear completely, just like other crypto lenders that had filed for bankruptcy around the same time.” David Barth and Alan Carr, members of the special board committee that led to the bankruptcy, said in a statement. statement.
They will secure the platform's cryptocurrencies, negotiate deals with creditors, restructure sustainable parts of the company, and resolve litigation with the U.S. Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission. He said it was extremely successful.
The company said in a separate filing that PayPal and Coinbase will distribute the virtual currency. Celsius will not make distributions through debtors' mobile or web applications, and these applications are expected to be closed on or about February 28th.
In bankruptcy proceedings, virtual currency financier Celsius paid a $4.7 billion settlement with US authorities over fraud charges. Former CEO Alex Mashinsky, who resigned in September 2022, was arrested on fraud charges for allegedly manipulating the price of the lender's CEL token, a charge he denies. .
Mr. Mashinsky was released on $40 million bail, and the court ordered his bank and real estate assets to be frozen. His trial is scheduled for September 2024.
