Court filing reveals Celsius has distributed $2 billion worth of crypto to creditors

Celsius, a crypto lender that declared bankruptcy in 2022, has reportedly made considerable progress in returning funds to its creditors. According to a recent court document filed by Celsius’s legal representatives, Kirkland & Ellis, the company has successfully distributed approximately $2 billion worth of cryptocurrency, aligning with its commitment to settle debts with its creditors.

This distribution process, which commenced at the end of January, includes transferring 20,255.66 Bitcoin (BTC) and 301,338.77 Ethereum (ETH) to a total of 171,672 creditors. These figures underscore the lender’s efforts to rectify the financial turmoil that led to its downfall last year.

Addressing Creditors’ concerns

The document further highlights Celsius’s responsiveness to creditors’ concerns regarding the logistics of receiving their dues. A notable issue was the difficulty faced by some international creditors in depositing checks from a US bank. In response, Celsius is exploring wire transfers as a solution to streamline the process and ensure all creditors can access their funds without undue hassle.

Moreover, the update brings to light a new development for creditors with an interest in the crypto mining sector. Eligible creditors are set to receive shares from a new mining company formed using the remnants of Celsius’s assets. This initiative, managed by the transfer agent Odyssey Transfer and Trust Company, represents an innovative approach to compensating those affected by the lender’s bankruptcy.

Ongoing recovery and compliance measures

As Celsius navigates its post-bankruptcy phase, the lender has not only focused on compensating creditors but also on regulatory compliance and operational restructuring. The reminder to former Celsius users about returning funds withdrawn shortly before the bankruptcy filing underscores the company’s adherence to legal and ethical standards in managing its recovery.

Celsius’s journey from discovering a $1.2 billion shortfall in its balance sheet to emerging from bankruptcy in November 2022 illustrates the volatile nature of the cryptocurrency market and the importance of robust financial management. The lender’s ongoing efforts to distribute $3 billion worth of crypto, as previously stated, marks a pivotal step in addressing the repercussions of its financial crisis and rebuilding trust within the crypto community.

This development serves as a crucial reminder of the risks inherent in the cryptocurrency lending market and the importance of due diligence and financial prudence for both companies and investors alike. As Celsius continues to work towards full compensation for its creditors, the crypto industry watches closely, hoping for a resolution that might set precedents for handling similar situations in the future.

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