Cryptocurrency lending company Celsius has distributed more than $2.53 billion in cryptocurrency and cash to creditors, accounting for about 93% of the total distribution, according to recent court filings.
Celsius has completed 93% of funding allocations
According to recently filed court documents, Celsius has distributed more than $2.53 billion in cryptocurrency and cash to its creditors — approximately 93% of its total distribution of $2.73 billion. This includes $1.43 billion in cryptocurrency payments via PayPal/Venmo, $917 million in cryptocurrency payments through Coinbase, and $178 million in cash transfers.
Most of the amounts were actually distributed as early as February
Celsius launched the process on Jan. 31 and had distributed $2 billion by February, according to previous reports. Payment amounts are based on cryptocurrency prices as of January 16, 2024. The current court documents are only updates. In fact, most of the distributions have been completed. The documents also show that most of the remaining creditors are involved in small distributions. About 64,000 of them owe distributions of less than US$100, and 41,000 owe distributions. Amounts range from US$100 to US$1,000. Celsius believes: Given that many creditors have smaller amounts, they may not have the incentive to take the necessary steps to complete a claim for distribution.
Celsius's transition to mining IPO failed to go smoothly and was questioned
Celsius announced the official conclusion of its Chapter 11 bankruptcy reorganization process earlier this year, successfully recovering funds from bankruptcy with the support of nearly 98% of account holders and the approval of the Bankruptcy Court for the Southern District of New York on November 9, 2023 . At the center of the restructuring plan is the distribution of $3 billion in cryptocurrency and fiat to creditors and the creation of a new Bitcoin mining entity, Ionic Digital, to be run by Hut 8 Corp. Ionic has been developing a Bitcoin mining facility in Texas and hoped to complete an IPO this year, but it has faced the audit firm RSM no longer accepting crypto-related clients and the departure of former CEO Matt Prusak when his contract expired in August. And delayed again and again.
Joseph Sarachek, an attorney representing some Celsius creditors, told a New York bankruptcy judge on Tuesday that a number of shareholders had recently contacted his office asking about the possibility of a forced liquidation of Ionic's assets, Bloomberg reported. Another Celsius creditor told a court hearing that other shareholders are trying to drum up support to oust Ionic’s board because of what they see as a lack of cryptocurrency mining experience.
(Celsius received court approval to transform into a Bitcoin mining company, will creditors become new shareholders?)
This article Celsius has completed the distribution of 93% of bankruptcy funds, and the IPO of the transformed mining company has been questioned. First appeared on Chain News ABMedia.
