Celsius Distributes $2 Billion in Cryptocurrency to Creditors
Date: 2024-02-17 Author: Dima Zakharov Categories: BUSINESS
Celsius's Distribution Process
Celsius, a prominent crypto lender that filed for bankruptcy in 2022, has disclosed in court documents that it has distributed a substantial amount of cryptocurrency to its creditors. The process, which began at the end of January, aims to allocate cryptocurrency totaling $3 billion. However, recent filings indicate that $2 billion worth of crypto assets have already been distributed.
Breakdown of Distributed Assets
According to legal filings, Celsius has allocated 20,255.66 BTC and 301,338.77 ETH to 171,672 creditors. Notably, nearly 75% of the BTC and ETH earmarked for distribution, which will be facilitated through PayPal/Venmo and Coinbase, have already been collected.
Methods of Distribution
Celsius plans to send bank transfers to its international creditors entitled to cash payments but residing in jurisdictions where bank checks are not used. This move aims to address concerns raised by creditors regarding difficulties in depositing checks in US banks within their jurisdictions.
Equity Distribution
Creditors entitled to receive shares in a new mining company formed with Celsius's remaining assets will receive electronic communications from the transfer agent, Odyssey Transfer and Trust Company.
Reminder for Former Celsius Users
Former Celsius users who withdrew funds from the platform within 90 days preceding the bankruptcy filing are reminded to return a portion of the withdrawn funds before their claims can be processed and distributed.
Background
Celsius filed for bankruptcy in 2022 after a $1.2 billion hole was discovered in its balance sheet. However, the company emerged from bankruptcy in November.
