Celsius Makes a Remarkable Return: Commencement of $2 Billion Distribution to Creditors!
Celsius Network LLC, the crypto lender currently grappling with bankruptcy since 2022, has revealed an innovative plan to distribute more than $2 billion in cryptocurrency to its creditors. This significant announcement, outlined in a recent court filing, not only sheds light on the revised Chapter 11 plan but also highlights the company’s dedication to a non-traditional payout method.
Let’s dive into the details of this court filing, uncovering the key objectives and goals.
Unveiling the Plan
The court document, dated February 15, 2024, reveals Celsius’s distinctive plan, which commenced on January 31, 2024, marking the start of the modified Chapter 11 plan. The standout feature? Celsius has opted for cryptocurrency distributions instead of the conventional cash route.
Recognizing the prolonged nature of the Chapter 11 cases, the post-effective date debtors emphasize in the court filing that the global distribution process has started successfully without encountering any major operational or security issues.
Addressing concerns regarding the Convenience Class opt-in during the September 2023 voting, the filing assures that all eligible creditors did indeed opt into the Convenience Class, as confirmed by the debtors’ meticulous records.
Liquid Cryptocurrency Distributions
Quoting directly from the court filing, “As of the date hereof, eligible Holders with PayPal/Venmo as their assigned Distribution Agent should have received an email from Stretto with further instructions.”
The filing provides specific details on claimed distributions:
PayPal/Venmo Distributions:
– 336,841 Claim distributions (each creditor receiving one distribution of BTC and one of ETH)
– 171,672 creditors
– 20,255.66 BTC
– 301,338.77 ETH
– $2 billion worth of cryptocurrency
Coinbase Distributions: Eligible holders with Coinbase as their assigned Distribution Agent received an email notifying them that funds had been deposited into their Coinbase account.
Troubleshooting Tips
For those encountering issues in claiming liquid cryptocurrency distributions, there is no need to worry. The filing assures that Celsius and its distribution agents are actively resolving claim errors to ensure a seamless experience for every creditor.
But that’s not all! The filing also reveals details about cash distributions in US Dollars, with the debtors exploring wire transfers to address concerns about check deposits in specific jurisdictions. This showcases Celsius Network’s comprehensive financial strategy in action.
The filing further outlines the expected communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock.
Beware of Phishing Attempts!
In a cautionary note, the filing warns creditors about ongoing phishing attempts. It provides guidance on how to recognize legitimate contacts from the post-effective date debtors and their advisors.
Celsius Network’s court filing is not just a legal document; it tells a comprehensive story that showcases the company’s commitment to its creditors. Distributing over $2 billion in cryptocurrency is not just a financial move; it is Celsius’s way of navigating bankruptcy with transparency, dedication, and finesse.