Celsius Network has completed its bankruptcy process, distributing $2.53 billion to 251,000 creditors. However, 121,000 creditors have yet to receive their distributions.
Details of creditor payments
As part of bankruptcy proceedings, Celsius Network has distributed $2.53 billion to approximately 251,000 creditors. This distribution, amounting to roughly 93% of the total eligible value, was made in liquid cryptocurrency and cash, valued as of January 16. The majority of creditors are owed small amounts: 64,000 creditors are owed under $100, and 41,000 are owed between $100 and $1,000. These small amounts may deter creditors from completing the necessary steps to claim their distributions.
Bankruptcy and reorganization plan
Celsius filed for bankruptcy in July 2022 following a halt in user withdrawals. In November 2023, the U.S. Southern District of New York Bankruptcy Court approved Celsius’s reorganization plan. The plan outlines the distribution of over $3 billion in various forms, including liquid crypto, cash, and shares in the new entity, MiningCo.
Global impact and challenges
The distribution process of Celsius affects over 375,000 creditors worldwide, spanning 165 countries. The process is complicated by regulatory challenges and Celsius’s prior non-compliance issues. Currently, the focus remains on ensuring that all eligible creditors receive their due, despite the hurdles posed by the small claim amounts and complex logistics.
Despite significant progress in making payments, a substantial number of Celsius Network’s creditors have yet to receive their distributions. The process continues with the intent to overcome the challenges and ensure all owed amounts are distributed appropriately.
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