Celsius Disburses $2.5B to 251,000 Creditors During Bankruptcy Proceedings

August 28, 2024 01:27 AM AEST | By Team Kalkine Media

Google News:

Celsius Disburses $2.5B to 251,000 Creditors During Bankruptcy Proceedings — Image source: shutterstock

Recent News

Fed Daly eyes fall for possible policy shift

Fifth Third Announces Three-Year, $20M Investment in North Nashville

Inogen Alliance Associate Awards: Environment Analyst Sustainability D...

New Zealand Construction Report 2025: Output to Contract by 1% Due to...

As of the latest update from the Celsius bankruptcy administrator, over 121,000 creditors have yet to claim their funds. Celsius Network, the troubled crypto lender, has made significant progress in its bankruptcy proceedings by repaying approximately $2.53 billion to 251,000 creditors. This amount represents about 84% of the total $3 billion in assets owed to over 375,000 creditors.

This development is noteworthy for the {cryptocurrency} industry, particularly as it coincides with the ongoing bankruptcy proceedings of the Mt. Gox exchange, which owes over $9.4 billion to 127,000 creditors. After a decade of legal battles, Mt. Gox creditors are beginning to recover their assets.

Despite the progress, a substantial number of creditors have not yet claimed their cryptocurrency. Of the remaining 121,000 creditors, around 64,000 are owed less than $100, and 41,000 are owed between $100 and $1,000. The bankruptcy administrator is working to distribute funds through Coinbase every two weeks, while PayPal claim codes remain redeemable for credits at all times.

The Celsius bankruptcy case began in July 2022, following the suspension of user withdrawals due to a sharp decline in the value of its native token, Celsius (CEL). Celsius sought bankruptcy protection to better address its withdrawal obligations. In addition to the bankruptcy process, Celsius has faced $4.7 billion in fines from the United States Federal Trade Commission and settlements with other regulatory bodies including the Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

Former CEO Alex Mashinsky has been charged with financial fraud, manipulation of CEL’s price, and misleading customers. Mashinsky, who has pleaded not guilty, remains out on a $40 million bond as he awaits trial scheduled for September.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.