Celsius Network has successfully emerged from bankruptcy after an eighteen-month process, with its reorganization plan approved by 98% of account holders.
The plan involves distributing over $3 billion in crypto and fiat to creditors. As part of the agreement, a new entity named Ionic Digital has been established and is owned by Celsius’ creditors.
Ionic Digital is set to become publicly traded, operating as a Bitcoin mining company managed by Hut 8 under a four-year agreement. Matt Prusak, formerly the Chief Commercial Officer at Hut 8, has been appointed CEO of Ionic Digital.
Celsius aims to enhance transparency and compliance with its shift to the “MiningCo Transaction” following feedback from the SEC. However, the company will cease operations, discontinuing its mobile and web applications.
The exit from bankruptcy marks a collaborative effort between Celsius, Hut 8, strategic partners, and creditors, according to David Barse and Alan Carr, members of Celsius’ Special Committee of the Board. Celsius gained attention by raising the argument of “unsecured creditors” in court to access client funds.
Following its bankruptcy declaration, Celsius issued a warning to users who withdrew more than $100,000, urging them to address outstanding liabilities promptly or face potential litigation.
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