Bitrabo Editorial
Despite facing challenges, the bankrupt crypto lender Celsius Network has successfully repaid two-thirds of its creditors. The plan administrator has disclosed the progress of the distribution plan and outlined the next steps in the repayment process.
Celsius Targets 375,000 Creditors in Distribution Plan
The first Status Report filed by Celsius’ plan administrator with the US Bankruptcy Court for the Southern District of New York revealed that over $2.5 billion has been distributed to creditors as of August 2024. The distribution involved diligence and coordination between the administrator, advisors, and various platforms.
Repayments have been made through platforms like Coinbase, PayPal, and Venmo. Coinbase is used biweekly, cash is distributed weekly, and PayPal claim codes can be redeemed at any time. The complexity of the process was heightened by the involvement of over 375,000 creditors from 165 different countries.
$2.5 Billion Disbursed to Creditors
Since January 31, Celsius has paid out to 251,000 creditors, amounting to around $2.53 billion in cash and cryptocurrencies. This represents two-thirds of all eligible creditors and 93% of the total value owed. Despite challenges, the initial distributions have been successful for a significant majority of creditors.
The distribution percentages have steadily increased over time, with creditors receiving approximately 65% initially, rising to 80% a month later, and subsequent distributions of 30%-40% since March. However, around 121,000 eligible creditors still await payments, with many set to receive relatively small amounts.
Out of the remaining creditors, 64,000 are due less than $100, while 41,000 fall in the $100 to $1,000 range. The Plan Administrator continues to make efforts to distribute payments to all eligible creditors, with a total of over 2.7 million distribution attempts for the present 372,000 creditors.