Bankrupt firm Celsius confirmed that the company distributed the majority of the funds to its creditors but confirmed that it would take time to solve the conflict with those creditors who failed to agree with the company’s offer.
Celsius is a bankrupt crypto firm. Before May 2022, Celsius was a popular crypto lending platform but collapsed badly following the collapse of the Terra (Luna) crypto empire. In July 2022, this company filed for bankruptcy protection under the Chapter 11 code.
As we already reported on 1 Feb 2023 Celsius was ready to distribute the funds to creditors, who agreed with the company’s reorganisation plan.
Beginning today, Eligible Users will be able to withdraw 100% of their Distributable Custody Assets less certain transaction fees. Eligible Users were previously authorized to withdraw 94% of their respective Distributable Custody Assets.
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— Celsius (@CelsiusNetwork) May 4, 2023
As per the latest court filing, Celsius representative law firm Kirkland & Ellis, provided an update on the creditor distributions as outlined in the restructuring plan.
As per the filing update, the company distributed 75% of the funds to the customers via Coinbase for US-based customers and PayPal for non-US customers.
So far distribution includes 20,255.66 Bitcoin and 301,338.77 Ethereum, worth nearly $2 Billion at the current trade price of these two flagship crypto assets.
The law firm confirmed that only those creditors will not receive funds who failed to agree with the company’s bankruptcy exit plan or are in jurisdictions where Coinbase & PayPal services are not available or are restricted under some kind of law.
For such creditors, the company will solve the problem individually as per their concerns.
This is really good news for all the Celsius creditors but some people believe that such steps to exit bankruptcy include many problems & it will significantly impact the crypto sector.
Meanwhile, Alex Mashinsky, the former CEO of the now-bankrupt crypto lender Celsius, is scheduled for trial in September 2024 regarding Celsius’ bankruptcy.
Reportedly In the initial phase of Celsius downfall, Alex was eager to restart & restructure the platform but the majority of the dominant stakeholders rejected his ideas. Later he was arrested for allegedly manipulating the trade price of Celsius (Cel) token & misleading investors, post-bankruptcy filing.
Read also: Honduras securities regulator bans crypto investment & transactions for Banks
Celsius distributes $2 billion in Bitcoin & Ethereum to the majority of the creditors
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