Celsius Network successfully distributed over $2.5 billion to a large majority of its creditors as part of the bankruptcy proceedings.
Ease the pain
Celsius Network finally making some big headway in repaying its creditors as it works through its bankruptcy process.
The company’s bankruptcy administrator has already distributed more than $2.53 billion to around 251,000 creditors.
This means that the company has settled with two-thirds of its eligible creditors, covering around 93% of the total eligible value. The payouts were made in cryptocurrencies and cash.
Distribution challenges
Surprisingly, not all creditors claimed the money. Approximately 121,000 eligible creditors, each with an average amount of about $1,500, have yet to take possession of their assets.
The court filing revealed that 64,000 of these remaining creditors are entitled to less than $100, while another 41,000 are due between $100 and $1,000.
The administrator believes that the relatively small amounts involved might not be enough motivation for some creditors to complete the necessary bureaucratic steps to claim their assets.
Celsius continues the work on the repayment
Celsius Network officially exited Chapter 11 bankruptcy on January 31 this year, and this date is the beginning of its distribution phase.
The firm’s restructuring plan received overwhelming support from account holders, with about 98% approval. Celsius raised an additional $250 million by converting its remaining crypto holdings into Bitcoin and Ethereum.
These funds were added to earlier settlements and have been distributed since then to creditors via popular payment platforms like PayPal, Venmo, and Coinbase.
Chris Ferraro, the former chief restructuring officer at Celsius, told that the company’s focus is on maximizing value and speeding up the distribution process.
In January, he announced that Celsius had begun distributing over $3 billion in assets, including cryptocurrency, and fiat to its creditors.
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