Insights of the Court Filing on Celsius Network’s $2 Billion Crypto Payout
Celsius Network LLC, the cryptocurrency lender currently going through bankruptcy proceedings, has unveiled a groundbreaking initiative to distribute more than $2 billion in digital currency to its creditors. This significant announcement, outlined in a legal document, provides detailed information about the revised Chapter 11 plan and the company’s commitment to its payout strategy.
Let’s delve into the specifics of this legal document, revealing important objectives and goals.
Distribution Process
The legal document, dated February 15, 2024, reveals that the debtors initiated the distribution process on January 31, 2024, which served as the effective date of the revised Chapter 11 plan. The document highlights Celsius’s decision to distribute cryptocurrency instead of cash.
Recognizing the lengthy nature of the Chapter 11 cases, the post-effective date debtors emphasize in the legal document that the global distribution process has been initiated successfully without encountering any significant operational or security issues.
The document also addresses concerns raised by creditors regarding the Convenience Class opt-in during the September 2023 voting. It explicitly states that all creditors indeed opted into the Convenience Class, as per the debtors’ records.
Liquid Cryptocurrency Distributions
Quoting directly from the legal document, “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 document provides detailed information about the 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 in their Coinbase account.
Troubleshooting and Tips
The legal document also offers troubleshooting tips for creditors experiencing difficulties in claiming their liquid cryptocurrency distributions. It asserts that the debtors and distribution agents are actively investigating claim errors to resolve any issues faced by creditors.
The document states that “Cash distributions in US Dollars are also underway” and explains that the debtors are exploring wire transfers to address concerns about check deposits in certain jurisdictions.
Additionally, the document outlines the expected communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock.
In a cautionary note, the legal document warns creditors about ongoing phishing attempts and provides guidance on how to identify legitimate contacts from the post-effective date debtors and their advisors.
Celsius Network’s legal document provides a comprehensive overview of its commitment to creditors, offering transparency into the inner workings of its Chapter 11 plan. The decision to distribute over $2 billion in cryptocurrency showcases Celsius’s dedication to navigating bankruptcy with transparency and efficiency.
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Crypto Regulations