Celsius begins the distribution of creditors as bankruptcy proceedings near the end

Bankrupt cryptocurrency lender Celsius Network has released its first status report on creditor distributions, revealing that affected parties have received more than $2.53 billion in liquid crypto and cash.

According to a filing with the United States Bankruptcy Court for the Southern District of New York, the $2.53 billion in crypto and cash was distributed to more than 251,000 creditors at prices set on January 16, 2024. Celsius is in the process of repaying other creditors. through their respective distribution agents.

Celsius repays $2.53 billion to 251,000 creditors

After Celsius’ reorganization plan was approved by a bankruptcy court and the U.S. Securities and Exchange Commission earlier this year, the beleaguered crypto firm began distributions around 31 January The plan involved the company distributing approximately $3 billion in cash, crypto and shares of Mining NewCo, a Bitcoin mining and holding entity, which Celsius would transition to when bankruptcy proceedings are completed.

Celsius said the assets were to be distributed to 375,000 creditors in more than 165 countries. To date, two-thirds of all eligible creditors have received 93% of the value. The distribution process has progressed over time despite the problems faced by creditors.

Some creditors have been unable to complete certain procedures, such as opening PayPal or Coinbase accounts with matching birth dates and email addresses, making their crypto rescues difficult.

Others have overwhelmingly small claims and are not incentivized to pursue their redemptions. Of the 121,000 creditors who have not received their distributions, about 64,000 have claims of less than $100, while 41,000 have claims between $100 and $1,000.

Redemptions and failed retries

While repayments to creditors continue, Celsius continues to resolve distribution-related issues such as failed repayments. The failed estate retries distributions through Coinbase every two weeks, retries cash distributions once a week, and ensures that PayPal claim codes are always redeemable after issuance.

In addition, Celsius has reassigned creditors who were unable to receive their refunds through their initially assigned distribution agents to new platforms. This means that some creditors have moved from PayPal to Coinbase, increasing the success rates of distributions.

Since distributions began, Celsius has attempted more than 2.7 million distributions and 26 wire transfer cohorts for eligible creditors.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!