TL;DR
- Celsius Network successfully concludes the distribution of over $3 billion to its creditors.
- The nearly unanimous support of 98% of account holders for its distribution plan was a crucial milestone for the company.
- They liquidated around 845,000 ETH for almost $2 billion on centralized platforms like Coinbase, expediting the payment process for creditors.
After an extensive and complex 18-month process through various stages of its bankruptcy proceedings, Celsius Network, the cryptocurrency lending company, fulfilled its promise to distribute over $3 billion in assets to its creditors. This process, marked by extensive collaboration with regulatory authorities and innovative approaches, such as alternative settlement agreements and the conversion of less liquid altcoins to major cryptocurrencies like Bitcoin and Ethereum, concluded successfully.
A key milestone for Celsius was securing almost unanimous support for its distribution plan, with 98% approval from account holders who had pending funds. This meticulously crafted plan involved transferring over $3 billion in a combination of cryptocurrencies and fiat currencies to creditors, providing relief after a prolonged and uncertain journey.
As part of this process, a new entity named Ionic Digital emerged, dedicated to Bitcoin mining. The ownership of Ionic Digital is distributed among creditors, while operational management is entrusted to the Canadian company Hut 8. This reflected Celsius’s adaptability to maximize value and efficiency during its restructuring.
Celsius Transferred Almost 845,000 ETH to Centralized Platforms
To facilitate timely distribution, Celsius chose to liquidate a significant portion of its Ethereum holdings recently. According to data from the blockchain analytics firm Spot on Chain, approximately 67,500 ETH tokens, equivalent to $157 million, were deposited into Coinbase’s institutional trading division.
Furthermore, Lookonchain, the on-chain tracking platform, revealed that Celsius recently transferred 18,000 ETH tokens from their reserves to Coinbase, representing around $40 million based on the current trend in Ethereum prices. In total, over 847,600 ETH, valued at nearly $2 billion, were transferred from various digital wallets to centralized trading platforms like Coinbase by the financially troubled company.
The strategic move to liquidate substantial amounts of Ether and other cryptocurrencies directly on exchanges aims to streamline the payout process for creditors eager to recover their funds expeditiously. This strategic approach was implemented in close collaboration with federal and state regulatory bodies, ensuring that the distributions complied with compliance standards.
With the conclusion of distributions and the initiation of winding down operations, Celsius can finally draw the curtains on its multi-year saga. While creditors may not recover the entirety of the sums owed, the meticulous administration of bankruptcy proceedings has left the majority satisfied, paving the way for the crypto industry to focus on rebuilding trust and strengthening a more resilient ecosystem.
