Celsius to Exit Bankruptcy with $3 Billion Payout

Celsius Network, a prominent cryptocurrency company, has embarked on a groundbreaking $3 billion payout as part of its approved strategy to exit bankruptcy. The move follows a New York Judge’s nod in November 2023 for Celsius to implement a comprehensive restructuring plan aimed at repaying customer assets. This ambitious reorganization has received the green light from both the Securities and Exchange Commission (SEC) and the Official Committee of Unsecured Creditors (UCC), ushering in a unique approach involving a new bitcoin mining firm, Ionic Digital.

The Restructuring Plan:

Under the restructuring plan, Celsius creditors are set to receive a diverse mix of crypto, fiat, and common stocks through the newly established Ionic Digital. To oversee operations for the next four years, Celsius has enlisted the expertise of Hut 8, a reputable mining company, through a management agreement.

Members of the Special Committee of the Board of Celsius, David Barse, and Alan Carr, expressed their optimism about the company’s journey from potential demise to its current position. They highlighted various achievements, including securing cryptocurrency assets, settling with preferred shareholders, and successfully auctioning off a reorganizable operating business to transition into a new Bitcoin mining company. Additionally, a litigation trust was established to pursue legal actions against parties that exploited Celsius. Notably, settlements were reached with the Department of Justice (DOJ), SEC, and CFTC.

Ongoing Regulatory Oversight:

Celsius is operating under the vigilant scrutiny of federal and state regulators to ensure secure and timely distributions during the restructuring period. The company has initiated the closure of its mobile and web applications, demonstrating its commitment to a thorough and transparent process.

Key Leadership Changes:

As part of the restructuring, Matt Prusak, Chief Commercial Officer of Hut 8, has been appointed as the CEO of Ionic Digital and will join the majority UCC-appointed Board of Directors. This strategic leadership change is expected to bring valuable insights and expertise to the newly formed entity.

Background and Legal Challenges:

Celsius filed for bankruptcy in July 2022, shortly after revelations that a former executive had cashed out $21 million. The company faced additional setbacks as its CEO, Alex Mashinsky, was sued by the New York Attorney General and arrested for fraud. Mashinsky has pleaded not guilty, and his trial is scheduled for September of this year.


Celsius Network’s bold move to initiate a $3 billion payout as part of its approved bankruptcy exit plan signifies a remarkable turnaround for the company. With regulatory approval secured and strategic partnerships in place, Celsius is navigating complex legal, regulatory, and business challenges to ensure the preservation and distribution of cryptocurrency assets, ultimately benefiting its customers and claim holders. The unfolding developments will be closely monitored, especially as the crypto industry continues to evolve and adapt to changing circumstances.