Core Network, a crypto lender that went bankrupt in July 2022, will distribute more than $3 billion in cryptocurrencies and fiat currencies to its creditors after the company's bankruptcy.。The plan also includes the creation of a bitcoin mining company, Ionic Digital, in which existing Celsius creditors would receive a stake.。

Celsius reorganizes out of trouble

The restructuring plan, announced on January 31, has been approved by about 98% of Celsius account holders and was approved by the bankruptcy court in November last year.。

In addition, the company increased the amount of cryptocurrency allocated to creditors by 2.$500 million, obtained through the conversion of alternative coins to BTC or ETH and previous settlements。

Another court filing shows that PayPal and Coinbase will distribute cryptocurrencies to Crescent's creditors.。In addition, Celsius will close its business, including mobile and web applications, by February 28.。

The last currency price report of Cellular and this waterfall stream show that there is a difference of $1.1 billion in liquid cryptocurrencies that can be used for distribution.。Similarly, Campagna said under oath that the amount of claims allowed was $4.2 billion, but the amount claimed here was $4.9 billion.。

New mining company operated by Hut 8

In addition, the new mining company will be operated by Hut 8 with a four-year management agreement.。Matt Prusak, Chief Commercial Officer of Hut 8, has been named CEO of Ionic Digital。

"When we were appointed in June 2022, everyone thought that Celsius would disappear like other crypto lenders that filed for bankruptcy in the same period, but we believe that Celsius will be able to navigate the complex legal, regulatory and business issues.。"David Barse and Alan Carr, members of the special committee of the Celsius Board of Directors, said。

The two further stressed that Celsius had negotiated and settled not only with creditors, but also with U.S. law enforcement agencies, including the Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission.。

In fact, the company had earlier faced fraud charges and settled with U.S. agencies during the bankruptcy process, paying $4.7 billion.。Former CEO Alex Mashinsky was also arrested on fraud charges, but was later released on $40 million bail.。