Cryptocurrency lender Celsius, which filed for bankruptcy in 2022, said in court documents filed Friday that it has distributed the majority of the crypto it owes creditors. Celsius previously announced that it plans to begin the process at the end of January and distribute $3 billion worth of cryptocurrencies.
“Nearly 75% of the BTC/ETH to be distributed through PayPal/Venmo and Coinbase has already been collected,” the company's law firm Kirkland & Ellis said in a statement. The latest information was filed in court Thursday.
According to the documents, Celsius distributed $2 billion worth of cryptocurrencies, transferring 20,255.66 BTC and 301,338.77 ETH to 171,672 creditors.
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The Foundation will make wire transfers to foreign creditors eligible for cash distributions, but those creditors are located in jurisdictions where cashier's checks are not used.
“Post-Effective Date debtors have received numerous communications from creditors concerned that they will not be able to deposit checks from U.S. banks in their jurisdictions, and Post-Effective Date debtors will have the option of wire transfer. “We believe that this will help resolve a large portion of these concerns,'' the document states.
The filing also states that creditors eligible to receive shares in the new mining company formed using Celsius' remaining assets will receive an email from the transfer agent, Odyssey Transfer and Trust Company. It is also stated that he will receive it.
Former Celsius users who withdrew from the platform in the 90 days leading up to the bankruptcy were reminded that they must return some of the withdrawn funds before their claims can be distributed.
Celsius filed for bankruptcy in 2022 after discovering a $1.2 billion hole in its balance sheet. The company emerged from bankruptcy in November.
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