Ethereum

Celsius

Cryptocurrency

2024

Cryptocurrency lending platform Celsius has successfully emerged from bankruptcy, marking a significant step in its restructuring plan filed in July 2022. According to the report provided bylegal representatives Kirkland &amp; Ellis, most eligible creditors have received their liquid crypto distributions totaling $2 billion, managed by payment giant PayPal and crypto exchange Coinbase. PayPal and Coinbase facilitate creditor payments 
Kirkland &amp; Ellis enlisted PayPal and Coinbase as distribution agents for U.S. and overseas creditors, respectively. Nearly 75% of the 20,255.66 Bitcoin and 301,338.77 Ethereum slated for distribution have already been successfully collected by creditors.
Celsius executed a comprehensive restructuring plan, aiming to settle creditor claims before the end of 2023. However, account holders who did not agree to the restructuring plan will have to wait until their claims are resolved before receiving any crypto distribution.
However, account holders may face challenges in receiving distributions if Coinbase or PayPal identify anti-money laundering (AML) or<a href="https://news.todayq.com/fallen-celsius-networks-3-billion-payout-begins/" rel="noopener noreferrer nofollow"> compliance issues</a>. Distribution agents have the discretion to withhold payments from those not meeting compliance requirements. The crypto industry speculates on the broader market impact of Celsius’ restructuring plan. The platform began recalling and rebalancing its crypto assets earlier to ensure timely distributions to creditors.
Concerns were raised by blockchain analytics firm Nansen, indicating that almost a third of the Ethereum in the pending withdrawal queue belonged to Celsius. In October 2023, Celsius sought court approval for its restructuring plan, aiming to repay creditors before the end of 2023. Legal challenges and CEO trials 
Meanwhile, the former CEO of Celsius, Alex Mashinsky, is scheduled for trial in September 2024 regarding Celsius’ collapse. Mashinsky’s legal team, also representing Sam Bankman-Fried, the former CEO of the bankrupt crypto exchange FTX, has faced scrutiny for potential conflicts of interest.
On February 6, U.S. prosecutors raised concerns about the involvement of lawyers Marc Mukasey and Torrey Young in both Mashinsky and Bankman-Fried’s cases. A Curcio hearing has been called, allowing judges to explore potential conflicts of interest and the reasons behind the lawyers’ involvement in both cases. The outcome of these legal proceedings continues to be of interest within the crypto industry, sparking speculation about potential impacts on the broader crypto market.
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Celsius completes $2 billion Crypto distribution, the potential impact on Market

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