Celsius bankruptcy leaders confirmed that they are going to reorganise the Celsius firm & distribute the funds back to customers.
Celsius was a popular crypto lending platform but in June 2022 collapsed badly following the downfall of the Terra crypto empire. The middle of 2022 was a very terrible period for this innovative sector because that caused the bankruptcy of multiple crypto platforms. In July 2022, Celsius filed for Chapter 11 bankruptcy protection.
Later in May 2023, the Celsius bankruptcy team decided to reorganise & return the customers’ funds.
Beginning today, Eligible Users will be able to withdraw 100% of their Distributable Custody Assets less certain transaction fees. Eligible Users were previously authorized to withdraw 94% of their respective Distributable Custody Assets.
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— Celsius (@CelsiusNetwork) May 4, 2023
In January 2023, the founder and former CEO of Celsius was hit with a lawsuit by the New York Attorney General, alleging that he’d misled investors.
Later he was arrested under 7 charges of fraud but he pleaded not guilty & was released from custody on a $40 million bond bail.
On 31 Jan 2024, Celsius announced that they are going to reorganise the Celsius firm but their services will be focussed on the Crypto mining business.
They also planned to distribute $3 billion in fiat & assets to Celsius creditors. The new Bitcoin mining company—Ionic Digital, Inc.— will be owned by Celsius’ creditors and mining operations will be managed by Hut 8 Corp.
This reorganisation & new mining firm decision was supported by 98% Company’s account holders and confirmed by the Bankruptcy Court for the Southern District of New York.
The current trade price of the Cel token, the native token of the Celsius platform, is $0.17 & this trade price is 26% down over the last 30 days of trade price.
Now it will be interesting to see the response by 2% of the Celsius creditors across the social media platforms, whether they will show opposition or will blindly accept it because already several times we noted that many bankrupt crypto platforms took decisions which was not supported by the creditors, while they claimed that they got full support from creditors.
Read also: Ripple (XRP) co-founder’s crypto wallet compromised, lost $112 million
Celsius is ready to exit bankruptcy with a $3 billion distribution plan
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