Celsius Emerges Strong While Repaying Over $3 Billion To Creditors To Exit Bankruptcy

Hoboken, New Jersey, Monday, February 19, 2024 – After nearly 18 months of going through the Chapter 11 bankruptcy process, Celsius Network LLC successfully emerged on January 31, 2024.¹

This follows the confirmation of its reorganization plan in November 2023 and analysts say signifies a partial recovery for creditors impacted by the platform’s financial struggles.

Over $3 billion worth of cryptocurrency and fiat will be distributed to Celsius creditors, exceeding initial estimates and reflecting increased asset recovery efforts, according to sources.

The distribution plan includes a combination of Bitcoin (BTC), Ether (ETH), and the newly created Ionic Digital stock, a publicly traded company focused on Bitcoin mining that will be partially owned by Celsius creditors.

This follows extensive court proceedings, negotiations with stakeholders, and cooperation with regulatory investigations.

While the distribution provides some relief for creditors, it remains unclear what percentage of their total holdings they will ultimately recover.

1. https://www.businesswire.com/news/home/20240131994097/en/Celsius-Emerges-from-Chapter-11-and-Commences-Distributions-of-Over-3-Billion-of-Cryptocurrency-to-Creditors[↩]