- Celsius Exit: Cryptocurrency lender Celsius successfully exits bankruptcy filed in July 2022.
- Distribution Agents: PayPal and Coinbase handle the distribution of $2 billion worth of crypto.
- Crypto Transfers: 20,255.66 BTC and 301,338.77 ETH distributed to creditors.
- Successful Collections: Nearly 75% of BTC/ETH already collected by creditors.
- Restructuring Plan: Account holders not agreeing to the plan will not receive distribution until claims are resolved.
- Compliance Challenges: Some account holders may face hurdles due to AML or compliance issues flagged by Coinbase or PayPal.
Celsius Completes $2 Billion Crypto Distribution
Bankrupt cryptocurrency lender Celsius has successfully distributed $2 billion worth of crypto assets to 172,000 creditors. This distribution, outlined in the restructuring plan, marks a significant milestone following Celsius’ bankruptcy filing in July 2022.
Managed by distribution agents PayPal and Coinbase, U.S. holders received their distributions through PayPal, while overseas holders were managed by Coinbase. The distribution consisted of 20,255.66 Bitcoin (BTC) and 301,338.77 Ether (ETH).
According to legal representatives Kirkland & Ellis, nearly 75% of the BTC/ETH intended for distribution has already been collected by creditors. However, holders who did not agree to the restructuring plan will have to wait until their individual claims are resolved before receiving any distribution.
Furthermore, certain account holders may encounter difficulties in receiving their distributions if flagged for Anti-Money Laundering (AML) or compliance issues by Coinbase or PayPal. Distribution agents have the discretion to withhold distributions from individuals deemed non-compliant.ش