Celsius, the cryptocurrency lending firm that declared bankruptcy in 2022, has reportedly made substantial progress in repaying its creditors, according to a recent court filing by its legal team, Kirkland & Ellis. The document, filed on a Friday, reveals that Celsius has initiated the distribution of the cryptocurrency owed to its creditors starting from the end of January. The firm is on track to distribute an impressive sum of $3 billion worth of cryptocurrency, having already disbursed $2 billion. This amount includes 20,255.66 Bitcoin (BTC) and 301,338.77 Ethereum (ETH) to a total of 171,672 creditors. This is a significant step towards resolving the financial turmoil that led to the lender’s bankruptcy filing after a $1.2 billion deficit was discovered in its balance sheet.
Addressing creditors’ concerns
The court document highlights Celsius’s efforts to accommodate the needs of its global creditor base. Many creditors have expressed concerns about depositing checks from a U.S. bank in their jurisdictions. In response, Celsius believes that offering wire transfers as an alternative payment method could resolve the majority of these issues. This adjustment demonstrates the firm’s commitment to facilitating a smoother repayment process for its creditors worldwide. Additionally, creditors eligible to receive shares from a new mining company, created from Celsius’s remaining assets, were informed they would be contacted by the transfer agent, Odyssey Transfer and Trust Company, via email.
Celsius legal and financial challenges
Celsius’s journey through bankruptcy has been complex, marked by its efforts to rectify the financial discrepancies that led to its downfall. The firm successfully emerged from bankruptcy in November, following its initial filing in 2022. As part of the ongoing settlement process, former Celsius users who withdrew funds from the platform within the 90 days preceding the bankruptcy filing are reminded that they must return a portion of those funds before their claims can be fully settled. This requirement underscores the legal and financial intricacies involved in Celsius’s bankruptcy proceedings, The Celsius case continues to unfold, serving as a pivotal example of the challenges and responsibilities faced by cryptocurrency lending institutions.