Celsius Distributes Over $2.5 Billion To Creditors Amid Bankruptcy Proceedings
Defunct crypto lender Celsius has distributed over $2.53 billion of the crypto and cash that is owed to its 372,000 eligible creditors.
In an Aug. 26 status report, Celsius’s bankruptcy plan administrator revealed that 68% of the firm’s creditors have been paid. The remaining distributions are mainly smaller payouts. So far, the bankrupt crypto lender has paid around 93% of the $2.73 billion that it owes.
121,000 Creditors Still Need To Receive Their Distributions
Of the amount that has been paid out so far, $1.43 billion was distributed using either PayPal/Venmo. Another $917 million was paid out to creditors via Coinbase, while $178 million in cash transfers have been sent as well. Approximately 121,000 creditors have not yet claimed a distribution due to the complexity of the process.
Some of the difficulties include “opening an account at PayPal with a matching date of birth, opening an account at Coinbase with a matching e-mail address and date of birth, or providing the PostEffective Date Debtors with accurate wire instructions and/or mailing address for a check,” according to the report.
Around 64,000 of the remaining creditors also have less than $100 worth of crypto. Meanwhile, between $100 and $1,000 is owed to 41,000 creditors. These creditors “may not be incentivized” to undergo the claims process given the small amount that is owed to them, said the bankruptcy administrator in the report.
Celsius To Set Up A Bitcoin Mining Company As Part Of Approved Reorganization Plan
Some of the funds will be used to set up a new Bitcoin mining company by the name of Ionic Digital as part of Celsius’s approved reorganization plan. Common shares for this new mining company will then be given to certain creditors. These shares are expected to make their way to the public market should the necessary approvals be given.
Celsius has successfully emerged from bankruptcy on January 31, 2024, concluding the company’s restructuring process. You can read our official announcement here https://t.co/jqQfSzxPyg.
— Celsius (@CelsiusNetwork) February 1, 2024
Hut 8, a Miami-based mining company, will oversee the new mining firm’s operations under a 4-year agreement.
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