Celsius Network, the crypto lender that filed for bankruptcy on 13 July 2022, has distributed over $2.53 billion to approximately 251,000 creditors, according to a recent status report from its bankruptcy administrator. These disbursements, made in liquid cryptocurrency and cash based on prices as of 16 January, cover roughly two-thirds of eligible creditors by number and about 93% of the eligible value. The details were provided in a court filing on Monday.
According to an article by Amitoj Singh for CoinDesk, this report also noted that 121,000 eligible creditors, with an average distribution of $1,500, have yet to claim their funds. Among these remaining creditors, around 64,000 are owed less than $100, and another 41,000 have distributions between $100 and $1,000. The filing pointed out that the small amounts involved might discourage some creditors from taking the steps necessary to claim their distributions.
The bankruptcy case officially closed after the U.S. Southern District of New York Bankruptcy Court approved a reorganization plan in November 2023. This plan, finalized in January 2024, involved distributing over $3 billion to Celsius creditors, including liquid crypto, cash, and common stock in MiningCo, the company that emerged from Celsius. The administrator described the distribution process as one of the most complex and ambitious ever attempted in a Chapter 11 case, involving around 375,000 creditors across more than 165 countries.
Celsius’s pre-bankruptcy regulatory issues have added to the complexity of the distribution process, as the company was not fully compliant with regulations and was facing enforcement actions from various regulators. Additionally, Celsius recently requested that the bankruptcy court order Tether to relinquish approximately $3.3 billion worth of Bitcoin, a move that Tether has strongly opposed, labeling it as “shakedown” litigation.
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