In addition to financial compensation, creditors will also receive a stake in the new company, Ionic Digital Inc., specializing in mining of valuable minerals, according to the company's official statement on Wednesday. After 18 months of bankruptcy proceedings, more than 98% of Celsius Network creditors accepted this plan. Approval of Ionic's public status is expected soon.

The company stated that it has managed to secure the cryptocurrency platform, negotiate with creditors, reorganize a part of the company that can continue its operations, and resolve issues with the U.S. Department of Justice, Securities and Exchange Commission, as well as the Commodity Futures Trading Commission.

Matt Prusak, Chief Commercial Officer of Hut 8, the company responsible for managing Ionic mining, was appointed as the CEO of Ionic.

In another statement, the company announced that PayPal and Coinbase will be handling the distribution of cryptocurrency. Celsius will not distribute cryptocurrency through mobile or web applications of debtors, which will be closed around February 28.

During the bankruptcy process, Celsius crypto-lenders also reached an agreement with U.S. authorities to pay $4.7 billion in connection with fraud charges. Former CEO Alex Mashinsky, who resigned in September 2022, was arrested on charges of manipulating the CEL token price, which he denies.

Mashinsky was released on bail of $40 million, and the court has set his trial date for September 2024.