Celsius Network said Wednesday it has begun distributing $3 billion worth of cryptocurrency and fiat to creditors after formally resolving Chapter 11 bankruptcy 18 months after suspending user withdrawals.
As part of ‘Celsius’ Approved Reorganization PlanAccording to Wednesday, some of the $3 billion will be allocated to establishing Ionic Digital, a new Bitcoin mining company owned by creditors. name.
Celsius creditors will own the mining company through common shares, which are expected to be publicly traded once the company secures the necessary approvals. Hut 8, a Miami-based mining company, will oversee Ionic’s mine operations under a four-year management agreement.
Along with this transition, Chelsea plans to phase out its operations by shutting down its mobile and web applications.
Celsius declared bankrupt On July 13, 2022, cryptocurrency lenders $1.2 billion gap From the balance sheet.
Last year, Celsius and its founder and former CEO Alex Mashinsky were sued by several regulators, including the Securities and Exchange Commission, the Federal Trade Commission and the Commodity Futures Trading Commission, accusing them of misleading customers. Mashinsky was also charged with fraud. His trial is scheduled. I’m planning to start in September.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.