Here is the edited news article: Celsius Exits Bankruptcy With New Mining Company and Creditor Repayments

Table of Contents

• The Road to Creditor Distribution Begins

The Road to Creditor Distribution Begins

After months of legal battles and uncertainty, Celsius Network has finally exited Chapter 11 bankruptcy. A new plan was approved to establish a mining company owned by creditors while repaying account holders and investors impacted by the platform’s freeze and eventual collapse.

As part of the bankruptcy plan, a new Bitcoin mining company called [Ionic Digital]((https://cryptonews.com/news/celsius-exits-bankruptcy-with-new-mining-company-and-creditor-repayments.htm)) will be created with full ownership by Celsius’s creditors. [Hut 8 Corp.]((https://www.prnewswire.com/news-releases/hut-8-to-oversee-bitcoin-mining-operations-for-ionic-digital-under-settlement-of-celsius-networks-chapter-11-cases-301573560.html)), a publicly traded mining firm, will oversee Ionic’s operations with Matt Prusak, Hut 8’s CCO, appointed as CEO.

According to official statements, more than $3 billion will be distributed to creditors. The repayment process has begun under Chris Ferraro, the court-appointed plan administrator.

The news has given some hope to former Celsius account holders grappling with the platform’s abrupt freeze in June. However, many questions remain over the role of former CEO Alex Mashinsky, who pleaded not guilty to fraud charges.

While the details of the repayment process are still emerging, on-chain data indicates that Celsius has moved large amounts of Ether (~$1.90B) since November. Some suggest these transfers may involve over-the-counter deals to acquire funds for distribution. Only time will tell how much and when creditors will actually receive their funds.

For now, the main takeaway is that the #Celsius saga appears to be finally coming to an end, potentially returning some value to those impacted by one of the largest crypto company collapses in history. However, many questions about what actually happened at Celsius remain unanswered. As the dust settles and creditors are repaid, there will likely be ongoing debates about regulation, risk management, and transparency in the crypto space. The road to recovery has started, but the journey will be a long one.

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Celsius Exits Bankruptcy With New Mining Company and Creditor Repayments appeared first on Althalla.