Celsius Fights To Reclaim $2 Billion Withdrawn Prior To Bankruptcy Declaration

According to a Bloomberg report, Celsius Network, the crypto platform that filed for bankruptcy in July 2022, demands that major customers who collectively withdrew over $2 billion before the bankruptcy return those funds to avoid potential litigation.  An oversight committee formed during Celsiuss Chapter 11 case has begun contacting customers who withdrew more than $100,000 [...]

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Celsius Bankruptcy: Fahrenheit Consortium to Acquire Celsius Crypto

The insolvent lender Celsius Crypto has announced that the Fahrenheit consortium has emerged as the winning bidder to acquire its assets.

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Celsius Follows FTX As It Begins Repaying Crypto To Creditors, Heres How Much

Bankrupt cryptocurrency lending company Celsius Network has followed behind FTX, revealing plans to disburse billions of dollars in crypto to creditors and establish a new Bitcoin mining company for its creditors.  Celsius To Distribute $3 Billion In Crypto To Creditors In a press release published on Wednesday, Celsius Network announced its successful emergence from bankruptcy. The company is now set to implement its plan of reorganization, which involves distributing over $3 billion in crypto assets and fiat currency to its creditors.  Related Reading: Crypto Analyst Predicts Shiba Inu Price To Surge Above $0.00001 The crypto lending company claimed that the reorganization plan has gained approval by approximately 98% of the companys account holders. Additionally, Celsius disclosed that the plan has been confirmed and accepted by the Bankruptcy Court of the New York Southern District and the United States Securities and Exchange Commission (SEC).  Earlier in 2022, Celsius filed for bankruptcy in New York after becoming one of the many victims of the crypto markets dramatic plunge which saw major token prices falling to new lows. Subsequently, the crypto lending platform froze all withdrawals, temporarily shutting off account holders access to their savings and funds.  Now, 18 months after halting withdrawals, Celsius is finally settled and has initiated steps to reimburse creditors. The crypto lending platform disclosed plans to boost its cryptocurrency distribution to creditors by almost $250 million. This would involve converting altcoins to Bitcoin (BTC) and Ethereum (ETH).  Our exit from bankruptcy is the culmination of an extraordinary team effort and extensive collaboration between Celsius, Hut 8, strategic partners, and our creditors,” Members of the Special Committee of the Board of Celsius, David Barse and Alan Carr stated.  The conclusion of the long-awaited repayment and the companys reorganization plans marks a milestone for Celsius as it reflects the organizations commitment to its creditors. It also underscores its compliance with regulatory obligations and resolvement of intricate legal issues within its business.  CEL token price falls despite repayment plans | Source: CELUSDT on Tradingview.com Celsius Forges Ahead With Creation Of New Bitcoin Mining Company As Celsius works to disburse $3 billion to its creditors, the crypto lending platform has also announced plans to create a new Bitcoin mining company, Ionic Digital, Inc. The Bitcoin mining company will be owned by Celsius creditors, and mining operations will be managed by Hut 8 Corp, a North American digital asset mining company.  Related Reading: Analyst Compared Solana To Ethereum ICO Boom, What Does This Mean For SOL Price? The objective of the Bitcoin mining company is to consistently provide recoveries to creditors and ensure that the best outcomes are guaranteed for them. After gaining the necessary requisite approvals, Ionic Digital stocks are expected to be publicly traded. Certain shares of the Bitcoin mining company have already been allocated to Celsius creditors.   Additionally, the Chief Commercial Officer (CCO) of Hut 8, Matt Prusak, will assume the role of Chief Executive Officer (CEO) at Ionic Digital. The publication revealed that he will be working with Celsiuss board of directors appointed by the Official Committee of Unsecured Creditors (UCC). Featured image from Bitcoinist, chart from Tradingview.com

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Celcius reportedly prepping litigation against creditor for leaking internal info

A court filing indicates that bankrupt crypto lender Celsius Network either intended to, or is potentially looking at taking legal action against crypto blogger and Celsius creditor Tiffany Fong over leaking internal information. looks like they want to/wanted to even though they owe me $ insane. pic.twitter.com/0EPxVZ6e3f — Tiffany Fong (@TiffanyFong_) April 14, 2023 A [...]

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Second Distribution By Celsius Network: Creditors To Receive Bitcoin Valued at $95,000 Each

Once a prominent player in the cryptocurrency lending space, Celsius Network has commenced its second round of distributions to creditors, amounting to $127 million. This follows the company’s prior efforts to distribute approximately $3 billion in crypto and fiat currency, initiated after a successful vote on its reorganization plan earlier this year. The latest distribution is aimed at eligible creditors affected by Celsius’ collapse and subsequent Chapter 11 bankruptcy filing, which temporarily halted withdrawals before the reorganization efforts.  Celsius Implements Changes To Second Distribution According to court documents, the funds for this distribution were converted from cash received from Litigation Administrators into Bitcoin (BTC) for eligible creditors with approved claims. This conversion was done to streamline the distribution process and minimize administrative burdens. Related Reading: Analyst Maps Out Dogecoin Price Arc To $3 Using A Logarithmic Scale Each eligible creditor will receive a cumulative distribution representing around 60.4% of their claims’ value as of the petition date. The BTC allocated for this distribution is based on a weighted average price of $95,836.23, reflecting the price at which Celsius purchased the cryptocurrency for this purpose. The distribution process is designed to ensure that creditors receive their allocated amounts in either cash or liquid cryptocurrency. If a creditor was scheduled to receive a distribution via US-based crypto exchange Coinbase but did not receive it by the designated date, the firm will continue to hold the liquid crypto for that creditor and convert it to cash when appropriate.  Bankruptcy Challenges Notably, the documents reveal that some creditors received initial distributions based on varying recovery rates57.87% for some and 57.65% for others. To rectify this discrepancy, those who received a higher initial distribution will see a corresponding reduction in their second distribution. Eligible creditors are encouraged to ensure their distribution information is up-to-date, especially if they need to change their distribution agent. If a creditor experiences issues receiving their funds, they can create a Customer Care Ticket to seek assistance. Related Reading: Storm Ahead? Bitcoin Price Could Tumble 20% Due To M2 Supply Concerns In addition to this distribution, Celsius asserts it will navigate the complexities of its bankruptcy proceedings, which include ongoing litigation that may affect certain creditors’ eligibility for distributions.  At the time of writing, the company’s native token, CEL, is trading at $0.23, recording a slight increase of 1% in the 24-hour time frame. Interestingly, CEL is one of the few cryptocurrencies on the market that has not recorded a significant uptrend over the past three weeks.  Year-to-date, the token is still down 2%, but when compared to its current trading level and its record high, it is even more concerning, with a 97% gap to its all-time high of $8 reached in June 2021 before the company’s collapse.  Featured image from DALL-E, chart from TradingView.com

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Judge Upholds Confidentiality of FTX Customers’ Identities, Citing Security Concerns

In the FTX bankruptcy case, the presiding judge John Dorsey has ruled to maintain the confidentiality of individual customer identities, according to a recent decision on Friday. Dorsey emphasized the importance of safeguarding these clients, expressing concern for their potential vulnerability to scams. Despite the Media’s Attempt, FTX Customers’ Identities Will Be Shielded From Public [...]

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‘Unjustly enriched’ — Core Scientific knocks back $4.7M claim from Celsius

Core Scientific has rejected a multi-million-dollar administrative claim from Celsius Network, arguing it’s owed an even higher amount from the crypto lender.

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US Court Dismisses Former Celsius Network CEO’s Motion to Block New York Attorney General’s Lawsuit

Former Celsius Network Alex Mashinsky will now have to defend himself against a lawsuit filed by New York Attorney General Letitia James after a New York County Supreme Court Justice rejected his attempts to have the suit dismissed. The court’s decision blocks the attempt by Mashinsky to stop James from seeking to preclude him from [...]

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CFTC Investigators Conclude Celsius And Former CEO Violated Rules, Potential Case Looms

The Commodity Futures Trading Commission (CFTC) has concluded its investigation into bankrupt crypto lender Celsius and its former CEO, Alex Mashinsky, and found that they violated United States rules, according to sources familiar with the matter.  The investigation, conducted by attorneys in the CFTC’s enforcement unit, revealed that Celsius misled investors and failed to register [...]

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