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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