Celsius Has Refunded $2.5 Billion to Two-Thirds of Its Creditors

Celsius has repaid 251,000 creditors, with 121,000 left to go.
So far, it has paid 93% of the funds it owed.

As a seasoned crypto investor who has navigated through the ups and downs of the digital currency market since its inception, I must admit that the recent developments at Celsius have left me both intrigued and somewhat skeptical.

Approximately two-thirds (67%) of Celsius’ users, totaling around $2.5 billion, have received their funds back from the defunct crypto company. This represents 251,000 creditors out of a grand total of 3.34 million ($3 billion) that Celsius owes. There are still approximately 121,000 creditors who have not yet claimed their deposits.

In a court filing dated August 26, this process was referred to as “the most complex and ambitious distribution scheme ever undertaken in a chapter 11 case.” The repayment was facilitated using liquid cryptocurrency, cash, and MiningCo stocks, which is the company that emerged from Celsius’ bankruptcy proceedings. Due to its business model prior to bankruptcy, Celsius had creditors spread across 165 different countries because it aggressively expanded its platform and user base globally.

Not All Celsius Creditors Want to Reclaim Their Funds

Approximately two-thirds of creditors have already received their repayments. Among the 121,000 remaining creditors yet to receive funds, Celsius owes small amounts (less than $100) to around 64,000 creditors and moderate amounts ($100 – $1,000) to roughly 41,000 creditors. It is possible that these individuals might not feel motivated or inclined to claim their respective shares due to the relatively small amounts they are owed.

As an analyst reporting on the matter, I can share that the bankruptcy estate is consistently striving to fulfill its obligations by dispersing funds to those owed. According to the recent filing, the Plan Administrator usually makes distributions via Coinbase every fortnight and PayPal claim codes can be redeemed whenever they are issued. Additionally, cash distributions are attempted roughly once a week. To date, the Plan Administrator has endeavored to distribute over 2.7 million payments in total […].

Apart from repaying over $3 billion, Celsius has agreed to pay fines totaling $4.7 billion to the US Federal Trade Commission (FTC). They have also reached settlements with other American regulatory bodies. The platform halted withdrawals for its users in June 2022 and declared bankruptcy the following month. CEO Alex Mashinsky is currently out on a $40 million bond, and he will stand trial in September for accusations of financial fraud, market manipulation, and misleading investors.

2024-08-28 12:01

Celsius Has Refunded $2.5 Billion to Two-Thirds of Its Creditors

Not All Celsius Creditors Want to Reclaim Their Funds

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