Celsius Network Announces Plan to Distribute Over $2 Billion in Cryptocurrency
Celsius Network LLC, the crypto lender currently undergoing bankruptcy proceedings since 2022, has revealed a groundbreaking plan to distribute over $2 billion in cryptocurrency to its creditors. This landmark announcement, outlined in a court filing, provides detailed insights into the modified Chapter 11 plan and the company’s commitment to the payout strategy.
Distribution Process
The court filing, dated 15 Feb 2024, unveils that the debtors initiated the distribution process on January 31, 2024, marking the effective date of the modified Chapter 11 plan. The court filing highlights Celsius’s choice of using cryptocurrency distributions over cash. Acknowledging the extended nature of the Chapter 11 cases, the post-effective date debtors emphasize in the court filing that the global distribution process commenced successfully without encountering “any significant operational or security issues.” The court filing also addresses creditor concerns related to the Convenience Class opt-in during the September 2023 voting.
Liquid Cryptocurrency Distributions
Quoting directly from the court filing, “As of the date hereof, eligible Holders with PayPal/Venmo as their assigned Distribution Agent should have received an email from Stretto with further instructions.” The filing provides specifically detailed claimed distributions for PayPal/Venmo and Coinbase, including various cryptocurrencies and their value.
Troubleshooting and Tips
The court document also offers troubleshooting tips for creditors experiencing difficulties in claiming liquid cryptocurrency distributions, asserting that the debtors and distribution agents are actively investigating claim errors to “resolve every creditor’s issue.” The filing states that cash distributions in US Dollars are also underway, and it details the debtors’ exploration of wire transfers to address concerns about check deposits in certain jurisdictions. The filing also outlines the expected communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock. In a cautionary note, the court filing warns creditors of ongoing phishing attempts and provides guidance on recognizing legitimate contacts from the post-effective date debtors and their advisors.
Celsius Network’s court filing provides a comprehensive overview of its commitment to creditors, offering transparency into the inner workings of its Chapter 11 plan. The decision to distribute over $2 billion in cryptocurrency highlights Celsius’s dedication to navigating bankruptcy with transparency and efficiency.
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