Celsius Distributes $2.5 Billion to Creditors as Bankruptcy Process Advances
Crypto firm Celsius has paid out over $2.5 billion to creditors as part of its bankruptcy proceedings.
Current data reveals that the company now holds just $5 million in on-chain assets following these distributions.
Celsius’s bankruptcy plan, which has been in progress for several months, has successfully delivered $2.53 billion to approximately 251,000 creditors, covering around 93% of the total claim amount. However, this figure only represents about two-thirds of the total number of eligible creditors, leaving 121,000 creditors still awaiting their payouts. Delays for these remaining creditors may be due to the relatively small amounts involved.
According to a recent update, many of the remaining creditors are owed less than $100 or between $100 and $1,000, which may reduce their incentive to complete the necessary steps to claim their distributions.
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The payments from Celsius were made in cash and liquid digital assets, valued as of January 16. The cryptocurrency market has seen a rise in asset prices this year, partly due to the approval of spot Bitcoin ETFs by the SEC.
Celsius, which once managed over $25 billion in assets and served more than 1.7 million users, was a significant player in the decentralized finance (DeFi) sector before its bankruptcy in July 2022. The company’s collapse, alongside other high-profile failures like Terra Network and FTX, contributed to a tumultuous period in the crypto industry. Recently, Celsius has utilized PayPal’s Hyperwallet services to facilitate these distributions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
