Key Distribution Details
- Payment Channels: Distributions will be processed via PayPal and Coinbase.
Creditor Benefits:
- Over $3 billion in crypto assets.
- Equity in Ionic Digital Inc., a new Bitcoin mining venture expected to go public.
- Approval Rate: 98% of creditors endorsed the plan after 18 months in bankruptcy proceedings.
Celsius’s Bankruptcy Journey
Turnaround Achievements
A special board committee led by David Barse and Alan Carr successfully:
- Preserved Celsius’s cryptocurrency holdings.
- Negotiated creditor agreements.
- Settled with U.S. regulators (DOJ, SEC, CFTC).
Leadership Transition
- Matt Prusak (CCO of Hut 8) appointed CEO of Ionic Digital.
- Celsius’s mobile/web apps will cease operations by late February 2024.
Legal and Financial Resolutions
Fraud Settlement
- Celsius agreed to a $4.7 billion settlement with U.S. authorities over fraud claims.
Former CEO Alex Mashinsky faces trial (September 2024) for alleged CEL token price manipulation.
- Released on $40 million bond; assets frozen.
FAQs
1. How will creditors receive their distributions?
PayPal and Coinbase will handle all crypto payouts; Celsius’s platforms will be discontinued.
2. What is Ionic Digital’s role?
Creditors gain stakes in Ionic, a mining operation set to become a publicly traded company.
3. Were regulatory issues resolved?
Yes. Celsius settled with the DOJ, SEC, and CFTC, concluding major legal challenges.
4. What happens to Alex Mashinsky?
His trial begins in September 2024; he denies allegations of market manipulation.
👉 Explore how Bitcoin mining impacts crypto markets
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