In a recent development following its 2022 bankruptcy declaration, Celsius, a prominent cryptocurrency lending firm, has begun handing over most of its digital assets to creditors. The company initiated this process in late January, following their announcement that around $3 billion in cryptocurrency would be returned to those owed.
Thousands of Creditors Receive Bitcoin and Ethereum
Lawyers from Kirkland & Ellis, representing Celsius, reported that they have successfully distributed roughly 75% of the earmarked Bitcoin and Ethereum. The distributions, made via PayPal/Venmo and Coinbase, saw the transfer of cryptocurrencies totaling $2 billion, including over 20,000 units of Bitcoin and 300,000 units of Ethereum, to 171,672 creditors.
To facilitate overseas creditors, Celsius is set to execute bank transfers for those eligible for cash distribution in regions where bank checks are not commonly utilized. This adjustment aims to resolve potential deposit issues with U.S. bank checks in foreign jurisdictions.
Moreover, the company is contacting creditors qualified to receive shares in the newly-formed mining enterprise, established from remaining assets, through Odyssey Transfer and Trust Company. This action reflects Celsius’s commitment to a transparent and fair distribution methodology.
Celsius has also reminded former users who withdrew funds shortly before the bankruptcy declaration of their duty to return part of those funds, as per bankruptcy protocols, to ensure equitable asset allocation among all claimants.
Final Stages of Celsius’s Bankruptcy Process
The journey that began with a $1.2 billion deficit on Celsius’s balance sheet has now entered its final stretch, with the asset distribution signaling the near end of the bankruptcy proceedings and promise of resolution for the complications faced during the period.