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Celsius, a bankrupted cryptocurrency establishment, has completed the distribution of about 2 billion dollars in cryptocurrencies to nearly 172 thousand creditors. This distribution, according to the court file, included 20,500 Bitcoin and 301,000 Ethereum. It was carried out among eligible creditors without any security or operational issues.
The legal team of Kirkland and Ellis, representing Celsius, recently submitted an update on the creditor distributions in the restructuring plan in a court file. This announcement was made after Celsius emerged from bankruptcy and most eligible creditors are now receiving their crypto distributions through two distribution agents, PayPal and Coinbase.
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According to Kirkland and Ellis, crypto distributions to owners in the United States are made through PayPal, while owners abroad are managed by Coinbase. In total, cryptocurrencies worth 2 billion dollars, including 20,255.66 Bitcoin, have been distributed to creditors.
In the stated application, it is stated that the claims of account owners who did not approve the restructuring plan need to be resolved individually. During this process, cooperation continues with PayPal and Coinbase, the payment and distribution agents, thus distributions are made to eligible creditors. In the crypto industry, there are various speculations about how the steps in Celsius’s restructuring plan could affect the broader crypto market.
On January 5, Cointelegraph reported that Celsius started to call back and rebalance its crypto assets to ensure timely distribution to creditors. However, the blockchain analysis firm Nansen highlighted that nearly one-third of the ETH in the pending withdrawal queue currently belongs to Celsius.
In October 2023, Celsius requested the court to approve the restructuring plan, hoping to repay creditors by the end of 2023. In the meantime, the cryptocurrency lending corporation’s former CEO, Alex Mashinsky, is expected to stand trial in September 2024 in connection with the collapse of Celsius. However, the legal team faced a review recently due to a potential conflict of interest as it also represents Sam Bankman-Fried, the former CEO of the bankrupted cryptocurrency exchange FTX.
On February 6, US attorneys expressed their concerns about the attorneys Marc Mukasey and Torrey Young, who filed a notice of hearing in criminal cases brought against former cryptocurrency CEOs. According to Cointelegraph, the US government may request a Curcio hearing for the judge to ask questions about the potential conflicts of interest and why both lawyers are involved in the Bankman-Fried and Mashinsky cases.
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