Celsius Exits Bankruptcy: Will distribute $3 Billion to the Creditors

Celsius Network, the cryptocurrency lending company that filed for bankruptcy in July 2022, has successfully emerged from Chapter 11 and initiated the distribution of over $3 billion to its creditors. The company made this announcement on Wednesday, marking a significant milestone in its journey through the restructuring process.

Celsius revealed in its statement that the emergence from bankruptcy was achieved by executing transactions under its confirmed plan of reorganization. The company has now commenced the distribution of both cryptocurrency and fiat currency, collectively valued at over $3 billion, to its creditors.

Members of the board committee overseeing the bankruptcy proceedings, David Barse and Alan Carr, expressed their satisfaction with the outcome. They stated, “When we were appointed in June 2022, everyone assumed Celsius would disappear completely like the other crypto lenders that were filing bankruptcy around the same time.” They emphasized that the successful exit from bankruptcy is the result of a collaborative effort involving Celsius, Hut 8, strategic partners, and creditors.

The re-emergence of Celsius from bankruptcy signals resilience and strategic planning, defying initial expectations of a complete dissolution. The company’s ability to navigate the complex landscape of crypto lending challenges, collaborate effectively, and secure the support of strategic partners and creditors underscores the determination and teamwork involved in this process.

After a challenging 18-month period that saw withdrawals temporarily paused, Celsius has now commenced the distribution of over $3 billion in cryptocurrency, fiat, and stock in Ionic Digital to its creditors. This step not only signifies the company’s commitment to fulfilling its financial obligations but also marks a new chapter for Celsius as it moves forward from the bankruptcy episode. The successful emergence from Chapter 11 positions Celsius to rebuild trust, continue its operations, and potentially reshape its role in the dynamic cryptocurrency lending space.