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Learning & News => News related to Crypto => Topic started by: sirty143 on February 02, 2024, 10:45:43 AM

Title: Celsius Emerges From Bankruptcy, Begins to Distribute $3 Billion to Creditors
Post by: sirty143 on February 02, 2024, 10:45:43 AM
Celsius Emerges From Bankruptcy, Begins to Distribute $3 Billion to Creditors

(https://i.imgur.com/Y9uiG0Wm.jpg)

Celsius has concluded its Chapter 11 bankruptcy process and is embarking on a new journey with the launch of Ionic Digital, Inc., a bitcoin mining company managed by Hut 8 Corp. This development follows a complex legal and financial restructuring... See more for yourself here (https://news.bitcoin.com/celsius-emerges-from-bankruptcy-begins-to-distribute-3-billion-to-creditors/).

Your opinion is greatly appreciated.
Title: Re: Celsius Emerges From Bankruptcy, Begins to Distribute $3 Billion to Creditors
Post by: Z-tight on February 03, 2024, 12:05:36 AM
I don't know how many percent in lost funds Celsius will refund to creditors, but it is still good news that they get something after a very long time, it would surely not cover for their loss, but it is better than a 100% loss. I know it is not all customers that would get a refund, a lot of their customers kept complaining that they could not update and confirm the data in their profile, which is a requirement by the court to get refunded, i don't know what will happen to such customers.

However, this is how processes like these usually ends, with only a handful of people a little bit happy, that is why you should never commit funds to centralized services or lending and earning platforms.
Title: Re: Celsius Emerges From Bankruptcy, Begins to Distribute $3 Billion to Creditors
Post by: yhiaali3 on February 03, 2024, 05:33:34 AM
Celsius was one of the large and well-known companies in crypto. It was a cryptocurrency lending company, as I remember, and it declared bankruptcy when there was a sharp decline in the market.

This is the first crypto company I have heard that has recovered from bankruptcy, and it is good that it will compensate all creditors. This is a big step from the company. It seems that the company has a professional work team that was able to develop a plan to emerge from the severe crisis by opening a new mining company to compensate creditors from its revenues.

In fact, this is good news for crypto in general when a company is able to come back from bankruptcy and be able to compensate creditors through a well-crafted business plan.
Title: Re: Celsius Emerges From Bankruptcy, Begins to Distribute $3 Billion to Creditors
Post by: Z-tight on February 04, 2024, 12:24:45 AM
Quote from: yhiaali3 on February 03, 2024, 05:33:34 AM
It was a cryptocurrency lending company, as I remember, and it declared bankruptcy when there was a sharp decline in the market.
The decline in the market is not the reason why Celsius collapsed, i know that is what they claim, but it is not true. Celsius had been long insolvent before they filed for bankruptcy, this lending company not only promised returns that were too good to be true, but they also used customers' deposit to engage in fractional reserve scam, all of this is what resulted in the collapse of the lending company.
Quote from: yhiaali3 on February 03, 2024, 05:33:34 AM
This is the first crypto company I have heard that has recovered from bankruptcy, and it is good that it will compensate all creditors. This is a big step from the company.
Celsius is not returning as a crypto lender, but the organization has been changed, and now they would operate as a mining company, under a new name. Take note that not all creditors are going to be refunded and even those that would be refunded won't get 100% of their lost funds back.