{"id":170571,"date":"2024-08-27T12:46:57","date_gmt":"2024-08-27T12:46:57","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=170571"},"modified":"2024-08-27T12:47:01","modified_gmt":"2024-08-27T12:47:01","slug":"celsius-bankruptcy-over-2-5-billion-distributed-but-121000-creditors-remain-unpaid","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/celsius-bankruptcy-over-2-5-billion-distributed-but-121000-creditors-remain-unpaid\/","title":{"rendered":"Celsius Bankruptcy: Over $2.5 Billion Distributed, but 121,000 Creditors Remain Unpaid"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">Celsius has repaid $2.53 billion to 251,000 creditors<\/span><\/strong><span data-preserver-spaces=\"true\">, covering 84% of the $3 billion owed, but 121,000 creditors remain unpaid, many of whom are owed small amounts.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Routine distribution process<\/span><\/strong><span data-preserver-spaces=\"true\">: Bi-weekly attempts via Coinbase and PayPal claim codes have been made to distribute the remaining funds, with over 2.7 million attempts for 372,000 eligible creditors.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Legal actions<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Celsius settled $4.7 billion in fines with US agencies, and former CEO Alex Mashinsky faces federal charges of financial fraud and price manipulation.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Celsius, <\/span><\/strong><span data-preserver-spaces=\"true\">the beleaguered <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-are-cryptocurrencies-and-which-are-the-best-to-invest-in\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cryptocurrency <\/span><\/a><span data-preserver-spaces=\"true\">lender, <\/span><strong><span data-preserver-spaces=\"true\">has made significant strides in its bankruptcy proceedings<\/span><\/strong><span data-preserver-spaces=\"true\"> by repaying approximately $2.53 billion to 251,000 creditors,<\/span><strong><span data-preserver-spaces=\"true\"> as revealed in a recent <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174908262480000000186.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">court filing<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/strong><span data-preserver-spaces=\"true\"> This repayment accounts for about 84% of the total $3 billion owed to over 375,000 creditors. <\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">This milestone is a crucial step in Celsius\u2019s efforts to resolve its financial crisis<\/span><\/strong><span data-preserver-spaces=\"true\"> following its bankruptcy filing in July 2022. The repayment process has seen two-thirds of eligible customers compensated, signaling a positive development for the broader crypto industry. <\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">This progress mirrors the recovery efforts of other major <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/cryptocurrency-exchange\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">crypto exchanges<\/span><\/a><\/strong><span data-preserver-spaces=\"true\">, such as the Mt. Gox exchange, which is also navigating its bankruptcy proceedings. Mt. Gox, which owed over $9.4 billion to 127,000 creditors, has begun returning assets after a decade-long wait.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite this notable advancement, <\/span><strong><span data-preserver-spaces=\"true\">not all creditors have actively pursued their funds.<\/span><\/strong><span data-preserver-spaces=\"true\"> Out of the <\/span><strong><span data-preserver-spaces=\"true\">121,000 creditors<\/span><\/strong><span data-preserver-spaces=\"true\"> who have yet to claim their money, a significant portion is owed relatively small amounts. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Approximately <\/span><strong><span data-preserver-spaces=\"true\">64,000 creditors<\/span><\/strong><span data-preserver-spaces=\"true\"> are owed amounts <\/span><strong><span data-preserver-spaces=\"true\">under $100,<\/span><\/strong><span data-preserver-spaces=\"true\"> while <\/span><strong><span data-preserver-spaces=\"true\">41,000<\/span><\/strong><span data-preserver-spaces=\"true\"> are owed between $<\/span><strong><span data-preserver-spaces=\"true\">100 and $1,000. <\/span><\/strong><span data-preserver-spaces=\"true\">This scenario has resulted in a diminished motivation for these creditors to pursue their claims, considering the relatively small sums at stake.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-170572\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/Celsius.jpg\" alt=\"Celsius Bankruptcy: Over $2.5 Billion Distributed, but 121,000 Creditors Remain Unpaid\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/Celsius.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/Celsius-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/Celsius-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">To address this, <\/span><strong><span data-preserver-spaces=\"true\">the Celsius bankruptcy administrator has implemented a routine distribution process.<\/span><\/strong><span data-preserver-spaces=\"true\"> The distribution of the leftover funds occurs every two weeks through Coinbase, while PayPal claim codes can be redeemed at any time.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">To date, more than 2.7 million distribution attempts have been made for the approximately 372,000 currently eligible creditors.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Legal Actions Amid Repayments<\/span><\/h2>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The Celsius bankruptcy saga has also been marked by significant legal and regulatory actions.<\/span><\/strong><span data-preserver-spaces=\"true\"> The company reached an agreement to pay $4.7 billion in penalties to several US agencies, such as the Federal Trade Commission and the Securities and Exchange Commission. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">In addition, <\/span><strong><span data-preserver-spaces=\"true\">former CEO Alex Mashinsky is currently facing federal charges<\/span><\/strong><span data-preserver-spaces=\"true\"> related to financial fraud and price manipulation. Although he has pleaded not guilty, Mashinsky is free on a <\/span><strong><span data-preserver-spaces=\"true\">$40 million bond <\/span><\/strong><span data-preserver-spaces=\"true\">as he awaits his trial.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">As Celsius works diligently to settle its debts and address its financial challenges, these recent events provide a hopeful outlook for the troubled landscape of cryptocurrency lending.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Celsius has repaid $2.53 billion to 251,000 creditors, covering 84% of the $3 billion owed, but 121,000 creditors remain unpaid, many of whom are owed small amounts. Routine distribution process: Bi-weekly attempts via Coinbase and PayPal claim codes have been made to distribute the remaining funds, with over 2.7 million attempts for 372,000 eligible &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Celsius Bankruptcy: Over $2.5 Billion Distributed, but 121,000 Creditors Remain Unpaid\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/celsius-bankruptcy-over-2-5-billion-distributed-but-121000-creditors-remain-unpaid\/#more-170571\" aria-label=\"More on Celsius Bankruptcy: Over $2.5 Billion Distributed, but 121,000 Creditors Remain Unpaid\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":170573,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[5559,5275,4656,4909],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170571"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=170571"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170571\/revisions"}],"predecessor-version":[{"id":170574,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170571\/revisions\/170574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/170573"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=170571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=170571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=170571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}