Celsius’ Bankruptcy Plan Administrator Pays Out Over $2.5B

As a seasoned analyst with years of experience navigating complex financial landscapes, I find myself both impressed and cautiously optimistic about the progress made by Celsius in its bankruptcy process. The distribution of over $2.53 billion to more than 251,000 creditors is no small feat, especially considering the intricacies involved in handling cryptocurrencies.

The court-appointed manager overseeing Celsius’ bankruptcy proceedings has disbursed over 2.53 billion dollars to approximately 251,000 creditors, as indicated in their initial update on the distribution process.

The payments were distributed as both digital cryptocurrency and cash, based on prices from January 16th. These payments account for approximately two-thirds of all qualifying creditors (in terms of number) and around 93% of the total eligible value, according to the administrator’s court filing on Monday. There are still approximately 121,000 remaining eligible creditors who have yet to receive their payments, with an average distribution amount of around $1,500 each.

As a crypto investor reviewing this filing, I noticed that around 64,000 creditors are expected to receive less than $100, and another 41,000 might get between $100 and $1,000. Considering the relatively small payouts for a significant number of these claimants, they may not feel motivated enough to take the necessary steps to successfully secure their distributions.

The bankruptcy proceedings for the company have now been officially concluded, as a reorganization plan approved by the U.S. Bankruptcy Court in the Southern District of New York in November was implemented. This plan, which outlines the distribution of over $3 billion to Celsius’ creditors, was finalized at the end of January. Since then, the ‘distribution process as per the Plan’ is likely the most complex and ambitious distribution process ever undertaken in a chapter 11 case, according to court documents submitted.

Here’s a possible way to rephrase it:

A few days ago, Celsius petitioned the bankruptcy court to seize approximately $3.3 billion in Bitcoin from Tether, claiming this was in response to accusations they deem as a “hostile” legal action which Tether has vowed to challenge.