Celsius Recovery

About Celsius Recovery

The Celsius bankruptcy estate created a novel restructuring plan that distributed cryptocurrency to creditors. Customers who had deposited cryptocurrency received a combination of cash and crypto. The plan created Ionic Digital, a bitcoin mining company, as part of the recovery. Celsius founder Alex Mashinsky was convicted of fraud in 2024. The Celsius case demonstrated both the risks of unregulated crypto lending and the challenges of restructuring crypto companies in bankruptcy. Creditors recovered approximately 67 percent of claims. The distribution of cryptocurrency rather than cash was innovative and reflected the nature of the underlying business. The case may serve as a template for future crypto bankruptcies.