Celsius distributes more than $2.5 billion to creditors in bankruptcy proceedings

Crypto lender gone missing Celsius distributed more than $2.53 billion in cryptocurrency and cash owed to its 372,000 eligible creditors.

In a state of August 26 reportCelsius’ bankruptcy trustee revealed that 68% of the company’s creditors have been paid. The remaining distributions are mostly smaller payouts. So far, the bankrupt crypto lender has paid about 93% of the $2.73 billion it owes.

121,000 creditors are still waiting for their distributions

Of the amount already paid, $1.43 billion was distributed via PayPal/Venmo. Another $917 million was paid to creditors via Coinbase, while $178 million was also sent in cash. About 121,000 creditors have yet to claim a distribution due to the complexity of the process.

Some of the difficulties include “opening a PayPal account with a matching date of birth, opening a Coinbase account with a matching email address and date of birth, or providing debtors after the effective date with accurate wire transfer instructions and/or a mailing address for a check,” according to the report.

About 64,000 of the remaining creditors also have less than $100 in cryptocurrencies. Between $100 and $1,000 are owed to 41,000 creditors. These creditors “may not have the incentive” to submit to the claims process given the small amount owed to them, the receiver said in the report.

Celsius to Create Bitcoin Mining Company as Part of Approved Reorganization Plan

Part of the funds will be used to create a new Bitcoin mining company called Ionic Digital as part of Celsius approved reorganization plan. The common shares of this new mining company will then be handed over to certain creditors. These shares should be put on the public market if the necessary approvals are given.

Celsius successfully emerged from bankruptcy on January 31, 2024, concluding the company’s restructuring process. You can read our official announcement here

— Celsius (@CelsiusNetwork) February 1, 2024

Hut 8, a Miami-based mining company, will oversee operations of the new mining company under a 4-year agreement.

Related articles:

PlayDoge (PLAY) – The Latest ICO on the BNB Chain

• Virtual Pet Dog 2D
• Play to win Meme Coin Fusion
• Staking and In-Game Token Rewards
• SolidProof Audit – playdoge.io