Celsius Creditor Distribution Takes Place With $2 Billion In Crypto Repaid

Key Points:

• Celsius creditor distribution started with $3 billion paid to creditors, and $2 billion already disbursed, including Bitcoin and Ethereum.
• Kirkland & Ellis confirms that 75% of BTC/ETH is distributed via PayPal, Venmo, and Coinbase to creditors.

Celsius, the lending platform that filed for bankruptcy in July 2022, has initiated the disbursement of $3 billion to creditors, following a court-approved plan.

Celsius Creditor Distribution Begins With $3 Billion Payout Following Bankruptcy

As part of Celsius creditor distribution process, Celsius has already paid out $2 billion to creditors, including over 20,000 Bitcoin (BTC) and 301,000 Ethereum (ETH), according to recent court filings.

Law firm Kirkland & Ellis confirmed that Celsius creditor distribution will take place for approximately 75% of the BTC/ETH through platforms such as PayPal, Venmo, and Coinbase. suddenly, Celsius transferred 20,255.66 BTC and 301,338.77 ETH to 171,672 listed creditors.

For those in territories without support for checks, Celsius will wire the funds, while creditors eligible for shares in the newly formed mining company Ionic Digital will be notified via email from transfer agent Odyssey Transfer and Trust Company.

Celsius Plans to Repay Debt and Cease Operations

However, there’s a twist for users who withdraw over $100,000 before the bankruptcy; they are required to return the funds. Failure to comply may result in legal action against them. Celsius, which faced bankruptcy due to a $1.2 billion deficit in its balance sheet, has been marred by legal battles, including accusations against CEO Alex Mashinsky, who was arrested last year and awaiting trial.

As of early 2024, Celsius has emerged from bankruptcy and is committed to repaying its debt. PayPal, Venmo, and Coinbase are facilitating debt distribution on behalf of Celsius. The company will gradually cease operations, with its mobile app and website shutting down on February 28.