In a significant development in the Celsius bankruptcy case, the crypto lender's administrator has distributed over $2.53 billion to more than 251,000 creditors.
In a significant development in the Celsius bankruptcy case, the crypto lender's administrator has distributed over $2.53 billion to more than 251,000 creditors as part of the bankruptcy process, according to a recent court filing.
The disbursements, made in liquid cryptocurrency and cash at January 16 prices, cover roughly two-thirds of all eligible creditors by number and about 93% of the eligible value, the administrator reported. However, another 121,000 eligible creditors have yet to successfully claim their distributions.
"Approximately 64,000 of these remaining creditors have a distribution of less than $100, and approximately 41,000 more have a distribution of between $100 and $1,000," the filing stated. "Given the small amounts at issue for many of these creditors, they may not be incentivized to take the steps needed to successfully claim a distribution."
The bankruptcy proceedings have been described as "the most complicated and ambitious distribution process ever attempted in a chapter 11 case" due to Celsius' lack of regulatory compliance prior to filing for bankruptcy.
The process involves distributing liquid crypto, cash, and common stock in MiningCo - the new company that emerged from Celsius - to around 375,000 creditors in over 165 different countries.
Celsius filed for bankruptcy in July 2022, a month after it paused user withdrawals, citing the need to put the company in a "better position to honor, over time, its withdrawal obligations." The bankruptcy saga has also seen the company settle $4.7 billion in fines with various U.S. regulatory agencies, and the arrest of its former CEO, Alex Mashinsky, on charges of financial fraud and misleading customers.
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