EddieJayonCrypto
1 Feb 24
After 18 months in bankruptcy court, Celsius will be distributing over $3 billion to its creditors and providing them with a stake in the newly formed Ionic Digital Inc. mining operation. The company's bankruptcy process also included a $4.7 billion settlement with U.S. authorities over fraud allega...
After 18 months in bankruptcy court, Celsius will be distributing over $3 billion to its creditors and providing them with a stake in the newly formed Ionic Digital Inc. mining operation. The company's bankruptcy process also included a $4.7 billion settlement with U.S. authorities over fraud allegations, and the former CEO, Alex Mashinsky, was arrested on fraud charges. With 98% of creditors approving the reorganization plan, Celsius is set to become a publicly traded company and continue its operations.
Celsius will be shipping out more than $3 billion to its creditors as its the firm's bankruptcy is officially closed. Apart from the cash, creditors will get a stake in the newly formed Ionic Digital Inc. mining operation, the company said in a statement on Wednesday. About 98% of Celsius Network’s creditors signed off on the plan after 18 months in bankruptcy court. Ionic is expected to become a publicly traded company once it clears approvals. The bankruptcy process also involved a negotiation with creditors and settlements with U.S. authorities over fraud allegations. The former CEO, Alex Mashinsky, who was arrested on fraud charges, is scheduled to face trial in September 2024. With the new reorganization plan approved and implemented, Celsius is set to enter a new phase as a publicly traded company.
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