Celsius Distributes Over $2.5 Billion in Bankruptcy Payouts

Celsius has distributed over $2.5 billion to creditors in its complex bankruptcy process, but many are still waiting to claim their funds.

Celsius, the troubled crypto lender, has taken a major step in its bankruptcy proceedings by distributing over $2.53 billion to more than 251,000 creditors. That’s a hefty chunk of change, but the process isn’t over yet. These payouts were made in both liquid cryptocurrency and cash, based on prices from January 16th, as stated in a recent court filing by Celsius’ bankruptcy administrator.

The Waiting Game for Some Creditors

Despite the impressive sum already distributed, around 121,000 eligible creditors are still waiting to claim their funds. According to the report, “approximately 64,000 of these remaining creditors have a distribution of less than $100, and approximately 41,000 more have a distribution of between $100 and $1,000.” It seems that for many, the small amounts at stake may not justify the hassle of navigating the complex claims process.

Celsius’ Bankruptcy Is a Complex & Ambitious Process

The bankruptcy case has been anything but straightforward. The court filing highlighted the challenge, describing the distribution process as “likely the most complicated and ambitious distribution process ever attempted in a chapter 11 case.” This isn’t just a regular liquidation; it’s a global effort involving 375,000 creditors across 165 countries.

What’s Next for Celsius?

Even though the court officially closed the bankruptcy after approving a reorganization plan in November, the story isn’t quite finished. Celsius still has to navigate the waters of its new entity, MiningCo, and the ongoing legal battles. Earlier this month, Celsius even asked the bankruptcy court to order Tether (USDT-USD) to hand over $3.3 billion in Bitcoin—a demand Tether is vigorously contesting.