Cryptocurrency lending platform Celsius Network LLC has successfully emerged from bankruptcy protection by completing the transactions under its confirmed plan of reorganization.
About 98% of the Hoboken-based firm’s creditors signed off on the plan after 18 months in bankruptcy court.
In a statement released Wednesday, the company announced that it will disburse more than $3 billion to its creditors. Additionally, creditors will receive a stake in the newly established Bitcoin mining company — Ionic Digital, which is expected to become a publicly traded company once it clears approvals.
“Our exit from bankruptcy is the culmination of an extraordinary team effort and extensive collaboration between Celsius, Hut 8, strategic partners and our creditors,” David Barse and Alan Carr, members of the Special Committee of the board of Celsius, said.
To facilitate secure, timely and fully compliant distributions, Celsius and its advisers have coordinated with the Unsecured Creditors Committee and certain federal and state regulatory agencies throughout its restructuring.
Matt Prusak, chief commercial officer, Hut 8, has been named CEO of Ionic Digital and will work with the previously announced board of directors, a majority of which were appointed by the UCC. Hut 8 will oversee Ionic Digital’s Bitcoin mining business under a four-year management agreement. Additional details on Ionic Digital will be forthcoming.