Bankrupt Celsius Releases First Payment Report to Creditors

The administrator overseeing Celsius bankruptcy has issued its initial payment report, revealing that over $2.53 billion in liquid cryptocurrencies and cash have been distributed.

According to court filings, as of January 16, these distributions have reached around 251,000 creditors, representing approximately two-thirds of all eligible creditors and accounting for 93% of the total value distributed.

Despite significant progress, nearly 121,000 eligible creditors have yet to claim their distributions, which average around $1,500 each. Of these, 64,000 are owed less than $100, while 41,000 are set to receive between $100 and $1,000. The filing suggests that the relatively small sums involved might not be enough to motivate some creditors to take the necessary steps to claim their funds.

The bankruptcy case officially concluded after the U.S. Bankruptcy Court for the Southern District of New York approved a restructuring 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 complex and ambitious distribution effort ever attempted in Chapter 11 cases.” The plan includes the distribution of liquid cryptocurrencies, cash, and shares in MiningCo, a new company created from Celsius, to approximately 375,000 creditors across 165 countries.

The complexity of the process has been exacerbated by Celsius non-compliance with regulations before bankruptcy and the numerous enforcement actions brought against the company by regulators.

Earlier this month, Celsius requested that the court order Tether to hand over approximately $3.3 billion worth of Bitcoin, a demand that Tether has labeled as “extortion,” with Celsius planning to contest the characterization.