The bankruptcy administrator for crypto lender Celsius has distributed more than $2.53 billion in liquid cryptocurrency and cash, according to the first status report on payouts. The distributions, made at January 16 prices, were sent to approximately 251,000 creditors, covering around two-thirds of all eligible claimants by number and 93% by value, the administrator noted in a Monday court filing.
Despite the significant progress, about 121,000 eligible creditors have yet to claim their distributions, which average around $1,500. Of those, 64,000 creditors have payouts of less than $100, while 41,000 others are owed between $100 and $1,000. The filing suggests that the relatively small amounts might not motivate these creditors to take the necessary steps to claim their funds.
The bankruptcy case officially closed after the U.S. Southern District of New York Bankruptcy Court approved a reorganization plan in November. The plan, finalized in January, outlined the distribution of over $3 billion to Celsius creditors. The filing describes the ongoing process as “the most complicated and ambitious distribution process ever attempted in a chapter 11 case.” The plan involves disbursing liquid crypto, cash, and shares in MiningCo—the new company created from Celsius—to around 375,000 creditors across 165 countries.
The complexity of the process is heightened by Celsius’ pre-bankruptcy regulatory noncompliance and multiple enforcement actions pursued by regulators against the company. Earlier this month, Celsius requested that the court order Tether to hand over bitcoin valued at approximately $3.3 billion, a claim Tether has labeled as a “shakedown” that it intends to contest.
