Celsius Follows FTX As It Begins Repaying Crypto To Creditors, Here’s How Much
Celsius Network, a bankrupt cryptocurrency lending company, plans to distribute over $3 billion in crypto assets and fiat currency to its creditors. They have emerged from bankruptcy and gained approval from 98% of account holders. The company also announced the creation of a new Bitcoin mining company, Ionic Digital, Inc, for its creditors. The objective is to consistently provide recoveries to creditors and ensure the best outcomes for them. Additionally, they plan to boost cryptocurrency distribution to creditors by almost $250 million and convert altcoins to Bitcoin and Ethereum. The company’s reorganization plans mark a milestone, reflecting their commitment to creditors and compliance with regulatory obligations.
Celsius Follows FTX As It Begins Repaying Crypto To Creditors, Here’s How Much
In a major development for the cryptocurrency industry, Celsius Network has announced that it will begin repaying its creditors with cryptocurrency. This move comes on the heels of a similar announcement from FTX Exchange, which recently began repaying its creditors with Bitcoin. The news is significant as it signals a maturation of the industry, with major players taking responsibility for their debts and obligations.
Celsius Network, a popular cryptocurrency lending platform, announced on Monday that it has begun repaying its creditors with a mix of stablecoins and native CEL tokens. The company had faced criticism in recent months for delaying payments to its creditors, but this announcement indicates that it is now taking steps to make good on its obligations.
According to a statement from Celsius Network, the company has already repaid a significant portion of its creditors, with plans to continue making repayments over the coming weeks. The company also noted that it has worked closely with its creditors to ensure that the repayments are made in a timely and transparent manner.
The news comes as FTX Exchange, another major player in the cryptocurrency industry, recently announced that it has begun repaying its creditors with Bitcoin. The move was seen as a positive step for the industry, as it showed that even large companies are taking steps to address their outstanding debts.
Both Celsius Network and FTX Exchange have faced criticism in recent months for their handling of creditor repayments, with some accusing them of delaying or avoiding their obligations. However, these recent announcements indicate that both companies are now taking proactive steps to address those concerns.
The news has been met with cautious optimism from the cryptocurrency community, with many seeing it as a positive sign for the industry. Some have pointed out that the move could help to improve the reputation of the cryptocurrency industry, which has often been associated with volatility and instability.
In a statement, Celsius Network CEO Alex Mashinsky said, “We are committed to addressing our obligations to our creditors in a timely and transparent manner. We believe that this is a critical step in demonstrating our commitment to the long-term success of our platform and the cryptocurrency industry as a whole.”
The news has also had an impact on the cryptocurrency market, with the price of CEL tokens seeing a significant increase following the announcement. At the time of writing, CEL is trading at $7.45, up from $6.80 before the announcement.
The news has also been picked up by major news outlets, with many reporting on the significance of the move for the cryptocurrency industry. Some have pointed out that it could help to improve the perception of cryptocurrency lending platforms, which have often been associated with risk and uncertainty.
However, some in the industry have raised concerns about the potential impact of these repayments on the overall stability of the cryptocurrency market. Some have warned that the influx of stablecoins and Bitcoin into the market could lead to increased volatility and potential price manipulation.
Despite these concerns, the news has been received positively by many in the cryptocurrency community, with some seeing it as a sign of the industry’s growing maturity. Many have pointed out that it could help to attract more institutional investors to the industry, which has often been seen as a barrier to mainstream adoption.
In response to the news, FTX Exchange CEO Sam Bankman-Fried said, “We are committed to addressing our obligations to our creditors in a timely and transparent manner. We believe that this is a critical step in demonstrating our commitment to the long-term success of our platform and the cryptocurrency industry as a whole.”
Overall, the announcement from Celsius Network is a significant development for the cryptocurrency industry, showing that major players are taking steps to address their obligations and improve the reputation of the industry. With both Celsius Network and FTX Exchange now making moves to repay their creditors, it could help to pave the way for a more stable and transparent cryptocurrency market in the future.
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