The post Celsius Distributes Over $2.5 Billion to Creditors Amid Bankruptcy appeared on BitcoinEthereumNews.com.

Celsius Network has paid over $2.53 billion to around 251,000 creditors as part of its bankruptcy proceedings. Most creditors are owed small amounts, with 64,000 owed under $100 and 41,000 between $100 and $1,000. About 121,000 creditors have yet to claim their distributions. Celsius Network’s bankruptcy proceedings have concluded. Celsius’ bankruptcy administrator distributed over $2.53 billion to approximately 251,000 creditors. This distribution, representing roughly 93% of the total eligible value, was completed in both liquid cryptocurrency and cash, using valuation prices from January 16. However, despite the substantial progress, not all creditors have claimed their distributions. Celsius Network Creditor Distribution (Document) The remaining 121,000 creditors, who have yet to receive their allocations, face challenges in the process. The majority of these creditors have relatively small claims, with 64,000 creditors owed less than $100 and 41,000 creditors owed between $100 and $1,000. The small amounts involved may deter these creditors from completing the necessary steps to claim their distributions, adding another layer of complexity to the process. Celsius Bankruptcy Plan Affects 375,000 Creditors Worldwide Celsius filed for bankruptcy in July 2022 following a halt in user withdrawals that has seen progress in its restructuring efforts. In November 2023, the U.S. Southern District of New York Bankruptcy Court approved Celsius’s reorganization plan. The plan outlines the distribution of over $3 billion in various forms, including liquid crypto, cash, and shares in MiningCo, the new entity of Celsius.  This complex and unprecedented distribution effort spans over 165 countries and affects around 375,000 creditors, further complicated by regulatory challenges due to Celsius’s non-compliance before its bankruptcy. As the distribution process continues, the focus remains on ensuring that all eligible creditors receive their due, despite the hurdles posed by the small claim amounts and the intricate logistics involved. Highlighted Crypto News Today New Zealand Introduces…

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Filed under: News - @ August 27, 2024 4:25 pm