Celsius Network Starts Paying Creditors Back

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Celsius Network has successfully resolved its Chapter 11 bankruptcy and is now distributing $3 billion worth of cryptocurrency and fiat to its creditors.

The company announced on Wednesday that it has reached an agreement with its creditors and that a portion of the distributed funds will be used to establish a new Bitcoin mining company called Ionic Digital.

The mining company will be owned by the creditors and is expected to be publicly traded once it receives necessary approvals. Hut 8, a mining company based in Miami, will manage Ionic’s operations under a four-year agreement.

As part of the transition, Celsius will begin to close down its mobile and web applications. The bankruptcy declaration was made in July 2022 after the company discovered a $1.2 billion deficit in its balance sheet.

Last year, Celsius and its former CEO, Alex Mashinsky, were sued by multiple regulators for allegedly deceiving customers. Mashinsky himself was charged with fraud and is set to face trial in September.