Celsius Bankruptcy Update: The Company Pays Out 93% of Eligible Value to Creditors in Bankruptcy Settlement

Celsius Bankruptcy Update: 64,000 Creditors May Lose Out on Payments Under $100

About 251,000 creditors have received more than $2.53 billion from Celsius‘ bankruptcy administrator, the company said in its first status update on the payouts. The payments were paid on January 16 in cash and readily convertible cryptocurrency. According to the administrator’s Monday court filing, they account for around 93% of the qualifying value and almost two-thirds of the crypto lender’s eligible creditors by number. There are still 121,000 qualified creditors who have not been able to legally claim their dividends, with an average distribution of about $1,500.

Approximately 64,000 of these remaining creditors have a distribution of less than $100, and approximately 41,000 more have a distribution of between $100 and $1,000. Given the small amounts at issue for many of these creditors, they may not be incentivized to take the steps needed to successfully claim a distribution.

the filing

Celsius Bankruptcy Ends with Record $3 Billion Distribution to Global Debtors

Following the United States Southern District of New York Bankruptcy Court’s November approval of a reorganization plan, the bankruptcy has now formally closed. At the end of January, a proposal was decided upon to disburse more than $3 billion to shareholders of Celsius. “The distribution process contemplated by the plan is probably the most complicated and ambitious distribution process ever attempted in a Chapter 11 case,” the filing stated, referring to the seven months that have passed.

The plan calls for giving cash, common shares in MiningCo, a new business that emerged from Celsius, and liquid cryptocurrency to almost 375,000 debtors across more than 165 nations. The filing stated that the complexity of the distribution procedure has grown since Celsius was not a fully regulatorily compliant business prepetition, and many regulators were pursuing enforcement actions against the debtors.

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