The Celsius Network administrator said in a Monday court filing that “about 64,000 of these surviving creditors have a payout of less than $100, and approximately 41,000 more have a distribution of between $100 and $1,000”.
Celsius Network, a cryptocurrency lending firm that has been grappling with financial difficulties, is progressively resolving the repayment aspect of its bankruptcy proceedings. According to a status report on the reimbursements, the bankruptcy administrator of the company has effectively distributed over $2.53 billion to approximately 251,000 creditors. This figure indicates that Celsius Network has resolved two-thirds of its eligible creditors and 93% in terms of eligible value.
These creditors received their assets in liquid cryptocurrency and cash, in accordance with their value as of January 16.
Approximately 41,000 other creditors have distributions between $100 and $1,000, while around 64,000 of these remaining creditors have distributions of less than $100, according to a court document made by the Celsius Network administrator on Monday.
According to the administrator, it may be necessary to provide sufficient incentives to the majority of these creditors in order to finalize the Celsius bankruptcy plan. The US Bankruptcy Court for the Southern District of New York approved this plan in November of last year.
This facilitated the distribution of approximately $2 billion in Bitcoin (BTC), Ethereum (ETH), and a few shares of the new company NewCo by the leading protocol to users who were unable to withdraw their funds prior to the necessary steps to claim a distribution due to the tiny quantities concerned.
On January 31, 2024, the organization emerged from Chapter 11 insolvency in order to commence the distribution of the funds. Approximately 98% of the company’s account holders approved its restructuring plan. Celsius Network even generated $250 million at the time to augment the funds available for distribution. The lender secures these funds by converting their crypto holdings to Ethereum and Bitcoin.
The funds raised from previous settlements are in addition to this. PayPal, Venmo, and the American crypto exchange Coinbase are among the payment platforms that creditors utilize to receive their repayments.
“Celsius has prioritized the best possible outcome for creditors by optimizing timeliness and value throughout this process.” Chris Ferraro, the former chief restructuring officer at Celsius, stated at the outset of the year, “We have commenced the distribution of over $3 billion of cryptocurrency, fiat, and stock in Ionic Digital to Celsius creditors, more than 18 months after Celsius ceased withdrawals.”
Also Read: New Zealand considers the implementation of the OECD’s crypto reporting standards
Wallets