Celsius Creditors Recover $2.53 Billion in Cash and Crypto Distribution

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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August 27, 2024 06:00 EDT

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Celsius has distributed more than $2.53b to about 251,000 creditors, the bankruptcy administrator said in a report on the disbursements.

This distribution accounts for about two-thirds of eligible creditors and roughly 93% in value, a Monday court filing showed. The administrator distributed the funds in crypto and cash, valued at Jan. 16 prices.

Additionally, around 121,000 eligible creditors, each holding an average claim near $1,500, have not yet successfully claimed their payouts. Among them, about 64,000 are owed less than $100 each. Another 41,000 are due amounts ranging between $100 and $1,000.

Further, about 12,000 creditors have yet to receive their share from the bankruptcy distribution. This delay is due to two primary factors. First, some claims are being held back. Additionally, others are missing essential information in their accounts, the administrator said.

Celsius Creditors See Swift Distribution After January Payout Began

The distributions to creditors have progressed swiftly following the payout initiation in January.

Within the first two weeks, around 65%, or $1.7b, was successfully distributed to creditors, the administrator said. A month later, nearly 80%, or about $2b, had been distributed.

Celsius Finalizes $3B Distribution as Bankruptcy Plan Draws to a Close

Earlier this year, Celsius declared its exit from Chapter 11 bankruptcy, finalizing its reorganization plan. This involved disbursing over $3b in cryptocurrency and fiat to creditors.

The latest disbursements indicate that most distributions have been completed. Now, the bankruptcy proceedings are near an end, as stated in the court-approved reorganization plan.