Celsius Goes out of Bankruptcy, Starts Distributions of Over $3Bn of Crypto to Creditors

Celsius Network LLC​ (Celsius), a global crypto platform and a well-recognized leader in Bitcoin mining, unveiled today that it has emerged from bankruptcy by closing the transactions under its confirmed plan of reorganization. The crypto firm sought Chapter 11 bankruptcy protection on July 13, 2022.

"This milestone marks the conclusion of an eighteen-month process during which the company built consensus among a wide range of stakeholders, resolved complex novel legal issues, fully cooperated with all regulatory investigations, and developed and consummated the transactions under the Plan," notes the company.

The reorganization plan, approved by around 98% of Celsius' account holders, includes the distribution of over $3 billion of crypto and fiat to the company's creditors, and the creation of a new Bitcoin mining company—Ionic Digital, Inc​. 

Ionic Digital will be owned by Celsius' creditors, and overseen by Hut 8 Corp, whose Chief Commercial Officer Matt Prusak has been appointed CEO of Ionic Digital.

Celsius increased the amount of crypto that would be available for distribution to creditors by approximately $250 million dollars through converting altcoins to BTC or ETH and via previous settlements.

"Creating the best outcome for creditors by maximizing value and speed have been front of mind for Celsius throughout this process," said Chris Ferraro, Plan Administrator and former Chief Restructuring Officer, Interim CEO, and CFO. "Today, over 18 months after Celsius paused withdrawals, we began distributing over $3 billion of cryptocurrency, fiat, and stock in Ionic Digital to Celsius creditors."

Celsius will pursue an orderly wind down of its operations, including discontinuing its mobile and web applications.