The Celsius Network bankruptcy administrator has reported the distribution of over $2.53 billion to approximately 251,000 creditors. This payout, made in liquid cryptocurrency and cash, marks a crucial step in the resolution of one of the most high-profile crypto bankruptcies to date.
Celsius Moves From Bankruptcy to Payout
The distribution, based on asset prices as of January 16, covers about two-thirds of all eligible creditors by number and a substantial 93% by value.
However, the process is far from complete. 121,000 eligible creditors have yet to successfully claim their distributions, which average around $1,500 each.
Interestingly, a major portion of these unclaimed distributions are relatively small. About 64,000 creditors are owed less than $100, while another 41,000 have claims between $100 and $1,000.
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The administrator notes that these smaller amounts may not provide sufficient incentive for claimants to complete the necessary steps for distribution.
The complexity of this bankruptcy case cannot be overstated. Described as “the most complicated and ambitious distribution process ever attempted in a Chapter 11 case,” the plan involves distributing assets to around 375,000 creditors across more than 165 countries.
This includes not only crypto and cash, but also common stock in MiningCo, the company that emerged from Celsius’s restructuring.
Adding to the intricacy, Celsius’s pre-bankruptcy regulatory non-compliance and ongoing enforcement actions have further complicated the distribution process.
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