The insolvency administrator for crypto lender Celsius has distributed more than $2.53 billion in liquid cryptocurrencies and cash, according to its first status report on payments.
Celsius Bankruptcy Plan Administrator Distributes Over $2.5 Billion to Creditors
The court filing said the distributions, at January 16 prices, were sent to approximately 251,000 creditors, covering approximately two-thirds of all eligible creditors in number and 93% in value.
Despite the significant progress, approximately 121,000 eligible payees have yet to claim their distributions, which average around $1,500.
Of those, 64,000 creditors were paid less than $100, while 41,000 were owed between $100 and $1,000. The filing suggests that the relatively small amounts may not motivate these creditors to take the necessary steps to claim their funds.
The bankruptcy case officially closed after the U.S. Bankruptcy Court for the Southern District of New York approved a reorganization plan in November. The plan, finalized in January, called for the distribution of more than $3 billion to Celsius creditors.
The filing describes the ongoing process as “the most complex and ambitious distribution process ever attempted in a Chapter 11 case.” The plan involves distributing liquid crypto, cash, and shares in a new company called MiningCo, created from Celsius, to approximately 375,000 creditors in 165 countries.
The complexity of the process is compounded by Celsius’s pre-bankruptcy non-compliance with regulations and the numerous enforcement actions taken against the company by regulators.
Earlier this month, Celsius demanded that the court order Tether to hand over approximately $3.3 billion worth of Bitcoin, a demand that Tether has described as “blackmail” and which Celsius plans to appeal.
*This is not investment advice.