Celsius issues creditors USD 3 bln in crypto in exit from bankruptcy

Monday 5 February 2024 11:15 CET | News

Crypto lender Celsius has announced it will distribute USD 3 billion in crypto to its creditor as the company’s bankruptcy is officially closed.


Apart from the USD 3 billion, creditors will get a stake in the newly formed Ionic Digital mining operation, Celsius reported. About 98% of Celsius Network’s creditors signed off on the plan after 18 months in bankruptcy court. Ionic is expected to become a publicly traded company once it clears approvals.

Celsius has announced it will distribute USD 3 billion in crypto to its creditor as the company's bankruptcy is officially closed.

The exit from bankruptcy

Officials from Celsius said they said they managed to secure the platform’s cryptocurrency, negotiate a deal with creditors, reorganise the part of the company that could continue and settled cases with the US Department of Justice, Securities and Exchange Commission and Commodity Futures Trading Commission.

Distribution of the USD 3 billion funds

In a separate filing, the firm said PayPal and Coinbase will distribute the cryptocurrencies. Celsius will make no distributions through the debtors’ mobile or web applications, which will be shut down on or around 28th of February.

Crypto lender Celsius’s bankruptcy process also saw it make a USD 4.7 billion settlement with US authorities over fraud allegations. The company’s former CEO – who had resigned in September 2022 – was arrested on fraud charges for allegedly manipulating the price of the lender's CEL token.

Previous news from Celsius

In March 2022, Italy's Anubi Digital has partnered with Celsius to enhance crypto services. The collaboration introduces CeFi solutions, catering to HNWI needs, providing pre-verified user security for digital assets. Celsius, a blockchain platform, offers financial services like compound interest and instant loans. Anubi Digital focuses on NFT custody, offering tax and legal services for the crypto lifecycle.

In July 2021, Celsius has affirmed its USD 54 million investment in Bitcoin miner Core Scientific, constituting a portion of Celsius' intended USD 200 million investment in North American Bitcoin mining. This revelation closely follows Core Scientific's announcement of its Nasdaq listing through a merger with Power & Digital Infrastructure Acquisition, valuing the miner at USD 4.3 billion. Celsius, a member of the Bitcoin Mining Council since June 2021, expresses commitment to addressing environmental concerns in the mining sector.

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Keywords: cryptocurrency, lending, mining, Bitcoin, PayPal
Categories: DeFi & Crypto & Web3
Companies: Celsius
Countries: World
This article is part of category

DeFi & Crypto & Web3


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