Celsius Emerges Victorious: Dodges Chapter 11, Plans $3 Billion Crypto Distribution to Creditors
Celsius, the troubled crypto lending platform, successfully sidesteps Chapter 11 bankruptcy. Revealing a strategy to repay creditors a substantial sum of $3 billion in crypto assets and fiat money.
In addition to this debt settlement, Celsius unveils plans for Ionic Digital, Inc., a new Bitcoin mining venture to be controlled by its creditors. The proposal gained overwhelming support, securing approval from 98% of the company’s account holders. And the endorsement of the Bankruptcy Court for the Southern District of New York. Chris Ferraro, interim CEO and current chief restructuring officer. Highlights the meticulous efforts over the past eighteen months, emphasizing the distribution of cryptocurrency, fiat, and stock in Ionic Digital as a significant step towards maximizing value and expediting the repayment process.
Notably, the initial plan, approved last November. Originally involved Ethereum (ETH) under the name “NewCo” before transitioning to Bitcoin (BTC).
Clever Robot News Desk 2nd February 2024