The leading crypto lending firm Celsius, which filed for bankruptcy in 2022, announced that it has successfully distributed the majority of the cryptocurrencies owed to its creditors. According to a court document filed on February 16, Celsius initiated the distribution process at the end of January, and as previously announced by the company, approximately $3 billion worth of cryptocurrency will be distributed to creditors.
$2 Billion in Crypto Transferred to 171,672 Creditors
The law firm of Celsius, Kirkland & Ellis, reported to the court in its update that about 75% of the designated Bitcoin (BTC) and Ethereum (ETH) has already been distributed through PayPal/Venmo and Coinbase. During the distribution process, cryptocurrencies worth $2 billion, including 20,255 units of BTC and 301,338 units of ETH, were transferred to 171,672 creditors.
Celsius plans to make bank transfers to accommodate overseas creditors who are eligible for cash distribution but are located in jurisdictions where bank checks are not used. This is intended to address concerns regarding the ability of creditors to deposit checks at U.S. banks within their own jurisdictions.
The company will also reach out to creditors entitled to receive shares of the new mining company created using the remaining assets through the transfer agent Odyssey Transfer and Trust Company. This step is part of Celsius’s effort to ensure transparency and openness in the distribution process.
Former Celsius users who withdrew funds from the platform within the 90 days before the bankruptcy were reminded of their obligation to return a portion of the funds they withdrew before the distribution of claims. This is part of the bankruptcy procedures and is necessary to ensure a fair and equitable distribution among all creditors.
The Bankruptcy Journey of Celsius
Celsius’s bankruptcy journey began in 2022 after a $1.2 billion shortfall was identified in its balance sheet, forcing the company to file for bankruptcy.
The company, which initiated the bankruptcy process in November 2022, appears to have successfully emerged from the process. The completion of the asset distribution process indicates that Celsius and its creditors are nearing the end of the road, and the issues encountered during the bankruptcy period are about to be resolved.
