Defunct centralized crypto lender Celsius has successfully distributed more than $2.53 billion in liquid cryptocurrency and cash to its creditors, covering approximately 93% of the eligible $2.73 billion owed.
As of now, around 251,000 of the 372,000 total eligible creditors, representing 68% of the total, have received their distributions, according to a status report filed by Celsius’ bankruptcy plan administrator.
The distributions include $1.43 billion in cryptocurrency via PayPal/Venmo, $917 million in cryptocurrency through Coinbase, and $178 million in cash transfers. The distribution process began on January 31, 2024, and reached $2 billion by February, with payouts based on cryptocurrency prices as of January 16, 2024.
Despite these significant payouts, approximately 121,000 creditors have yet to claim their distributions, primarily due to the complexity of the process. The remaining creditors are mostly those owed smaller amounts, with about 64,000 creditors owed less than $100 and 41,000 between $100 and $1,000.
The plan administrator noted that Celsius has made over 2.7 million distribution attempts for the 372,000 creditors, with recurring attempts to distribute funds via Coinbase every two weeks and cash distributions weekly.
As part of Celsius’ reorganization plan, some funds were allocated to establish a new bitcoin mining company, Ionic Digital. Certain Celsius creditors will own shares in this new company, which is expected to go public once necessary approvals are obtained. Miami-based mining company Hut 8 will manage Ionic’s operations under a four-year agreement.
Background on Celsius’ Bankruptcy
Celsius filed for bankruptcy in 2022 after discovering a $1.2 billion deficit in its balance sheet. The company emerged from bankruptcy in November of the same year. In addition to its financial troubles, Celsius and its former CEO Alex Mashinsky faced lawsuits from multiple U.S. regulators, including the SEC, FTC, and CFTC, for allegedly misleading customers. Mashinsky, who was also charged with fraud, is set to stand trial on September 17.
Celsius has recently initiated lawsuits against Tether, Badger DAO, Compound, and even the niece and nephew of Israeli Prime Minister Benjamin Netanyahu, in efforts to recover funds for its creditors.
