Celsius bankruptcy trustee has repaid over $2.5 billion to approximately two-thirds of creditors

According to CoinDesk, cryptocurrency lending company Celsius stated in its first claims report that its bankruptcy trustee has distributed over $2.53 billion to approximately 251000 creditors.

In a court filing submitted on Monday (26th), the bankruptcy administrator stated that these payments were made in the form of liquid cryptocurrency and cash at prices on January 16th, covering approximately two-thirds of Celsius's eligible creditors. From a value perspective, the paid amounts cover approximately 93% of eligible value. Another 121000 eligible creditors have not yet successfully received their distributions, with an average distribution amount of approximately $1500.

Among these remaining creditors, approximately 64000 have distributions of less than $100, and another approximately 41000 have distributions between $100 and $1000. "The document states," Due to many of these creditors having small distributions, they may not have the motivation to take the necessary steps to successfully claim distributions

Celsius announced bankruptcy in July 2022, and the bankruptcy case officially came to an end after the U.S. Southern District Bankruptcy Court approved the restructuring plan in November of last year. The plan to distribute over $3 billion to creditors was finalized at the end of January, and the document stated that in the following seven months, "the distribution process examined by the plan may be the most complex and time-consuming distribution process attempted in the history of Chapter 11 bankruptcy cases.

The Celsius restructuring plan involves distributing liquid cryptocurrencies, cash, and common stock of MiningCo (Celsius's transformed new company) to approximately 375000 creditors from over 165 different countries. The legal documents indicate that due to Celsius not fully complying with regulatory requirements before bankruptcy, and many regulatory agencies taking enforcement actions against debtors, the complexity of the distribution process has increased.

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