Over $2.53 billion has been distributed to approximately 251,000 creditors by the Celsius Network bankruptcy administrator, signifying a key advancement in one of the largest crypto bankruptcy cases.
Major Distribution Milestone Reached
The Celsius Network bankruptcy administrator has reported the successful distribution of over $2.53 billion to approximately 251,000 creditors. This significant development is a crucial step in the ongoing resolution of one of the most prominent cryptocurrency bankruptcy cases in recent years. The payout, executed in liquid cryptocurrency and cash, marks a substantial effort to address creditor claims and resolve the financial crisis surrounding the defunct lending platform.
Details of the Distribution Plan
In a recent filing with the U.S. Bankruptcy Court for the Southern District of New York, the Celsius plan administrator provided an update on the distribution process. As of August 2024, more than $2.5 billion of eligible value had been distributed to creditors. This distribution covers roughly two-thirds of all eligible creditors by number and represents 93% of the total owed value. The asset valuations were based on prices as of January 16.
The bankruptcy administrator is expected to continue efforts to ensure that all eligible creditors receive their due distributions in the coming months.
Complexity Of Distribution
The Celsius bankruptcy case, often described as one of the most complex Chapter 11 proceedings, involves distributing assets to approximately 375,000 creditors across over 165 countries. The intricate nature of the case has been compounded by regulatory challenges, as various authorities have pursued enforcement actions against Celsius for non-compliance with regulatory requirements.
Challenges of Coordination
The distribution process has required extensive coordination and diligence over the past seven months. The bankruptcy administrator, working closely with advisors, has successfully facilitated distributions through various platforms, including Coinbase, PayPal, and Venmo. Cryptocurrency distributions occur bi-weekly via Coinbase, while cash distributions are processed weekly. Additionally, creditors can redeem the PayPal claim codes at any time once issued.
Ongoing Efforts
Despite these efforts, the process is not yet complete. As of the latest report, 121,000 eligible creditors have yet to claim their distributions, which average around $1,500 each. A significant portion of these unclaimed distributions involves smaller amounts, with approximately 64,000 creditors owed less than $100 and another 41,000 holding claims between $100 and $1,000. The administrator has noted that the relatively low value of these claims may deter some creditors from completing the necessary steps to receive their distributions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
