Celsius Network, a bankrupt crypto lending company, has submitted a plan to the U.S. Bankruptcy Court for the Southern District of New York, explaining how it intends to repay its creditors. The plan involves using PayPal’s Hyperwallet service to handle fund distributions.
Why Hyperwallet?
Celsius chose Hyperwallet as a payment method due to concerns that some creditors might face issues with traditional wire transfers, especially if there are mistakes or missing details in the instructions. As a subsidiary of PayPal, Hyperwallet allows creditors to easily convert funds between cryptocurrency and cash. The platform also provides a self-service portal where creditors can select how they want to receive their payments, based on options available in their country. This payment option will cover 117 countries, including India, Egypt, El Salvador, and Bahrain. By using Hyperwallet, Celsius hopes to avoid delays and make the repayment process smoother for creditors who have been waiting for nearly two years to get their money back.
Ongoing Legal Challenges and Recovery Efforts
In addition to working on its repayment plan, Celsius is also involved in legal cases to recover more funds. One major case involves a $3.5 billion lawsuit against Tether. Celsius claims that Tether engaged in unfair and fraudulent Bitcoin transactions before Celsius collapsed. Tether’s CEO, Paolo Ardoino, has denied these claims, calling the allegation “baseless” and stating that the company is ready to defend itself in court. Celsius has also taken legal action against certain creditors who withdrew large amounts of funds shortly before the platform’s collapse in 2022. The outcome of these legal cases will determine how much money Celsius can recover and distribute to its creditors.
Next Phase of Payouts
Today, Celsius provided a notice to the court about Hyperwallet, a new USD claim distribution service of PayPal. More information can be found on the Celsius Network website. The distribution process will cover a significant number of countries, ensuring a smoother repayment process for creditors.
The use of PayPal’s Hyperwallet as a repayment method could expedite the reimbursement process for Celsius’ creditors, and ongoing legal proceedings may increase the total amount of funds available for distribution.
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