Cryptocurrency lending company Celsius said in its first claims status report that its bankruptcy administrator has distributed more than $2.53 billion to about 251,000 creditors, CoinDesk reported.
The payments were issued in liquid cryptocurrency and cash at prices on January 16 and covered approximately two-thirds of Celsiusâ eligible customers, the bankruptcy administrator said in a court filing on Monday (26th). The number of creditors, from a value perspective, is that repayments cover about 93% of the qualifying value. Another 121,000 eligible creditors have not yet successfully received their distributions, which averaged about $1,500.
"Of these remaining creditors, approximately 64,000 received distributions of less than $100, and approximately 41,000 received distributions between $100 and $1,000," the filing reads. People whose distribution amounts are small may not have the incentive to take the necessary steps to successfully claim their distribution.â
Celsius declared bankruptcy in July 2022, and the bankruptcy case officially ended after the U.S. Bankruptcy Court for the Southern District of New York approved a reorganization plan in November. Plans to distribute more than $3 billion to creditors were finalized in late January, the filing stated. In the seven months since, "the plan contemplated what may have been the most complex and time-consuming distribution ever attempted in Chapter 11 history."
The Celsius restructuring plan involves the distribution of liquid cryptocurrency, cash and common stock in MiningCo (Celsiusâ new transformed company) to approximately 375,000 creditors in more than 165 different countries. Legal filings note the complexity of the distribution process has been increased because Celsius was not fully compliant with regulatory requirements prior to bankruptcy and a number of regulators are taking enforcement actions against the debtors.
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