Celsius Network to Distribute $2 Billion in Cryptocurrency to Creditors
Bankrupt crypto lender, Celsius Network LLC, has revealed its plan to distribute over $2 billion in cryptocurrency to its creditors as part of a revised Chapter 11 plan. This approach will see creditors receiving digital assets instead of traditional cash.
Successful Distribution Process
The distribution process was launched on January 31, 2024, and has since seen a smooth operation with no significant operational or security issues reported. A court filing from February 15, 2024, confirmed that all creditors who opted into the Convenience Class during the voting in September 2023 have been accommodated according to records.
Distribution Agent Instructions
Eligible holders who assigned PayPal/Venmo as their Distribution Agent have been sent emails with detailed instructions on how to receive their share of the distributions. A total of 336,841 claims have been processed, involving 171,672 creditors. Each creditor will receive one distribution of Bitcoin (BTC) and one distribution of Ethereum (ETH), totaling 20,255.66 BTC and 301,338.77 ETH. These distributions amount to $2 billion worth of cryptocurrency.
Holders with Coinbase as their Distribution Agent have been notified via email that their funds have been deposited in their Coinbase accounts.
Smooth Process for Creditors
Celsius Network and its distribution agents are actively working to resolve any claim errors and ensure a seamless process for every creditor.
Other Distribution Methods
The court filing also mentions the possibility of cash distributions in US Dollars and the exploration of wire transfers for jurisdictions where check deposits may pose challenges. Creditors can expect communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock. The filing also warns creditors about ongoing phishing attempts and provides guidance on how to identify legitimate contacts.
Transparency and Dedication in Bankruptcy Navigation
Celsius Network’s initiative to distribute over $2 billion in cryptocurrency demonstrates its commitment to transparency and dedication in navigating bankruptcy.
Analyst comment
Positive news.
As an analyst, this distribution of over $2 billion in cryptocurrency to creditors shows that Celsius Network is actively resolving claim errors and ensuring a smooth process. This transparent initiative will likely build trust and credibility, potentially boosting the market confidence in Celsius Network and the overall cryptocurrency industry.
