Creditor distribution initiated by Celsius nearing conclusion of bankruptcy proceedings. 🚀

Update on Celsius Network Distributing $2.53 Billion to Creditors 🚀

If you’ve been following the news, Celsius Network, a cryptocurrency lender, has recently released its first status report detailing distributions to affected parties. Over $2.53 billion in liquid crypto and cash has already been distributed to more than 251,000 creditors. Here’s a breakdown of what’s been happening:

Celsius Repays $2.53B to 251K Creditors 📈

After receiving approval from a bankruptcy court and the U.S. Securities and Exchange Commission, Celsius began distributing assets to creditors at the end of January. The reorganization plan involved distributing about $3 billion in cash, crypto, and shares of Mining NewCo, a Bitcoin mining and staking entity that Celsius will transition into post-bankruptcy.

The assets were meant to be distributed to 375,000 creditors across 165 countries.
Two-thirds of eligible creditors have received 93% of the total value so far.
Despite challenges, the distribution process has been moving forward gradually.

Challenges Faced by Creditors

Several creditors have encountered obstacles during the redemption process:

Some have not completed necessary procedures like opening PayPal or Coinbase accounts with correct information.
Others with very small claims may not be motivated to move forward with the redemption process.
Out of 121,000 creditors awaiting distributions, 64,000 have claims below $100.

Addressing Failed Redemptions and Re-Attempts 🔄

To address failed redemption attempts and other distribution issues, Celsius has taken the following measures:

Failed redemption attempts are retried through Coinbase every two weeks.
Cash distributions are re-attempted weekly.
Claim codes for PayPal can be redeemed at any time post-issuance.
Creditors who faced issues have been reassigned to different distribution platforms for better success rates.