Celsius Repays $2 Billion in Crypto to 171,672 Creditors
By AZC News | 3 hours ago
According to the court-approved plan, Celsius has initiated the disbursement process of $3 billion in crypto to creditors since the beginning of this month.Celsius Repays $2 Billion in Crypto to 171,672 Creditors
Celsius, the lending platform that filed for bankruptcy in July 2022, has paid out $2 billion to creditors, including over 20,000 Bitcoin (BTC) and 301,000 Ethereum (ETH), the company stated in its latest court filing.
Kirkland & Ellis law firm, representing the company, confirmed that nearly 75% of the BTC/ETH has been distributed to creditors through PayPal, Venmo, and Coinbase exchange. Specifically, Celsius transferred 20,255.66 BTC and 301,338.77 ETH to 171,672 listed creditors.
For creditors in territories not supporting checks or money orders, Celsius will wire funds to their bank accounts. Creditors eligible to receive shares in the newly established mining company, Ionic Digital, will receive an email from the transfer agent, Odyssey Transfer and Trust Company.
As previously announced earlier this year, Celsius requested users who withdrew funds (over $100,000) from the platform before the bankruptcy to return the funds. Compliance will result in future fund allocations; otherwise, they may face asset recovery lawsuits from the platform.
Related: Celsius Successfully Exits Bankruptcy, Initiates Debt Repayment
Celsius filed for bankruptcy protection in July 2022 after discovering a $1.2 billion hole in its balance sheet. Since then, the platform has faced a dark period, from numerous lawsuits with U.S. regulators to allegations targeting CEO Alex Mashinsky, who was arrested last year and is awaiting further court proceedings.
As of the beginning of 2024, the company announced its emergence from bankruptcy and pledged to repay the remaining $3 billion debt starting from February 1st.
