Celsius Network has announced that it has begun distributing funds to creditors. Approximately $3 billion has been rolled out in cryptocurrency and fiat currency. Also, Celsius Network has said that it is incorporating a new Bitcoin mining company called Ionic Digital Inc. It will be owned by Celsius’s creditors, with operations managed by Hut 8 Corp.
The distribution of funds worth more than $3 billion marks a significant milestone for the company, for there was a time when it was deemed to disappear along with other crypto companies. However, it emerged from Chapter 11 after 18 months of effort. These were done in association with the core team, stakeholders, and other relevant parties. Celsius Network, in the announcement, said that it was all about navigating its way around legal complexities and regulatory investigations.
Celsius Network is now making the distribution after receiving approval from 98% of the account holders of the company. This is a part of the plan that was drafted by Celsius and approved by the Bankruptcy Court for the Southern District of New York, also referred to as simply the Bankruptcy Court.
Feedback from the US Securities and Exchange Commission has also played a major role in Celsius reaching this pivotal moment.
The company is now transitioning to MiningCo Transaction in close coordination with the UCC, an acronym for the Official Committee of Unsecured Creditors. The Bankruptcy Court received the approval for the MiningCo Transaction on December 27, 2023, last year.
Distribution hails an increment of almost $250 million to creditors, achieved by converting altcoins to ETH or BTC. Needless to say, it forms a part of the settlement that will be done in cryptocurrency.
According to Chris Ferraro, the company’s interim CEO, getting the best possible outcome for creditors is their top concern. This includes maximizing the speed and value for creditors. Chris has further stated that distribution is not just in crypto and fiat but also in stocks in Ionic Digital.
David Barse and Alan Carr have credited the success of coming back from Chapter 11 to team effort and collaboration with partners, including Hut 8. Members of the Special Committee of the Board of Celsius added that everyone expected Celsius to disappear. Instead, they have been able to navigate their way around for a comeback.
Matt Prusak, the Chief Commercial Officer of Hut 8, has been named the Chief Executive Officer of Ionic Digital. Hut 8 is tasked with honoring the 4-year management agreement and overseeing the Bitcoin mining business of the venture.
Moving forward, Celsius Network has said it will work to wind up or discontinue the offering of web and mobile applications.
With that, CEL, the native token of Celsius, continues to plummet. The previous decline of 6% was noted in the last 24 hours, taking the value of the token to $0.1728. Its market cap and 24-hour volume are down by 6% and 22.46%, respectively.