Celsius, the now-defunct centralized crypto lender, has made significant progress in its bankruptcy proceedings, distributing over
$2.53 billion in cryptocurrency and cash to its creditors.
Distribution Progress
As of the latest update,
251,000 out of 372,000 eligible creditors have received their distributions, covering approximately 93% of the total eligible claims. The distribution process, which began in January 2024, has involved transferring $1.43 billion in crypto via PayPal and Venmo, $917 million through Coinbase, and $178 million in cash transfers.
Challenges with Unclaimed Distributions
Despite the substantial progress, around
121,000 creditors have yet to claim their distributions. The unclaimed amounts often involve smaller sums, with many creditors finding it challenging to navigate the process, such as setting up accounts with matching details on PayPal or Coinbase.
Future Steps and Reorganization
Celsius has also used some of the funds from its bankruptcy plan to establish a new bitcoin mining company,
Ionic Digital. Certain creditors will own shares in this company, offering them an additional potential recovery avenue. The company is expected to go public once the necessary approvals are secured.
As Celsius continues to address the remaining claims and logistical challenges, it moves closer to fully resolving its bankruptcy case.
Read more at The Block.
