- Celsius bankruptcy trustee disbursed over $2.5 billion to creditors.
- Approximately 251,000 creditors have received their assets.
- 121,000 creditors are still awaiting their funds.
- Distribution covers about 2/3 of all clients expecting returns.
- Payments were made in liquid cryptocurrency as of January 16, 2024.
Celsius выплатила кредиторам более $2,5 млрд в рамках процедуры банкротства
The Celsius bankruptcy trustee has taken significant steps in addressing the company’s financial obligations. According to a recent [announcement](https://cases.stretto.com/public/x191/11749/PLEADINGS/1174908262480000000186.pdf), over $2.53 billion has been distributed among approximately 251,000 creditors. The disbursements were made in liquid cryptocurrency, reflecting the company’s efforts to fulfill its commitments as of January 16, 2024.
Current Status of Creditor Payments
The payments cover around two-thirds of all clients awaiting the return of their funds, accounting for 84% of the total debt. However, there are still about 121,000 creditors who have not yet received their assets. The company has noted that a significant portion of these creditors—approximately 64,000—are entitled to distributions of less than $100, while around 41,000 have claims ranging from $100 to $1,000.
Challenges in Distribution
Celsius representatives have acknowledged that many creditors with smaller claims might not be inclined to take the necessary steps to obtain their funds, given the minimal amounts involved. This poses a challenge in ensuring that all creditors receive their due payouts.
Conclusion of Bankruptcy Proceedings
Early in 2024, Celsius announced the completion of its bankruptcy procedure under Chapter 11 of the U.S. Bankruptcy Code. As part of the approved reorganization plan, the company committed to repaying creditors $3 billion in digital assets and fiat currency. This plan was sanctioned by the court in November 2023, which included the distribution of liquid cryptocurrency and shares of a new company, MiningCo.
Legal Disputes and Future Developments
In August 2024, Celsius approached the bankruptcy court to compel Tether to relinquish Bitcoin assets worth over $2.4 billion, accusing the USDT issuer of contract breaches and erroneous liquidation of Bitcoin assets. Tether has dismissed these claims as baseless.
In another legal development, former Celsius CEO Alex Mashinsky faced allegations in 2022 of providing false information about the company’s status shortly before its bankruptcy. The trial, initially set for fall 2024, has been postponed to January 2025 at the request of both parties. Mashinsky’s defense will be handled by attorneys Mark Mukasey and Torrey Young, who also represent former FTX head Sam Bankman-Fried.
The distribution of $2.5 billion among creditors marks a significant milestone in the Celsius bankruptcy case, demonstrating the company’s commitment to resolving its financial obligations. However, the ongoing legal disputes and the remaining unpaid creditors highlight the complexities and challenges inherent in large-scale bankruptcy proceedings within the cryptocurrency sector.
