Celsius Marks a Comeback: $2 Billion Distribution to Creditors Starts Now!

Celsius Network LLC, the crypto lender currently wrestling with bankruptcy since 2022, has unveiled a game-changing plan to distribute over $2 billion in cryptocurrency to its creditors. This noteworthy revelation, detailed in a recent court filing, not only sheds light on the revamped Chapter 11 plan but also underscores the company’s commitment to an unconventional payout approach.

Let’s delve into the details of this court filing, uncovering significant objectives and goals. 

Unwrapping the Plan

The court document, dated February 15, 2024, spills the beans on Celsius’s unique plan, which kicked off on January 31, 2024, signaling the start of the modified Chapter 11 plan. The standout feature? Celsius is opting for cryptocurrency distributions instead of the traditional cash route.

Acknowledging the extended nature of the Chapter 11 cases, the post-effective date debtors emphasize in the court filing that the global distribution process commenced successfully without encountering “any significant operational or security issues.”

Addressing concerns about the Convenience Class opt-in during the September 2023 voting, the filing assures that “all such creditors did, in fact, opt into the Convenience Class,” as per 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 specifically detailed 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 Tips

For those facing hiccups in claiming liquid cryptocurrency distributions, fear not. The filing assures that Celsius and its distribution agents are actively resolving claim errors to ensure a smooth sailing experience for every creditor.

But that’s not all! The filing spills the beans on cash distributions in US Dollars, with the debtors exploring wire transfers to address concerns about check deposits in specific jurisdictions. It’s Celsius Network’s comprehensive financial strategy in action.

The filing also outlines the expected communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock.

Watch Out for Phishing!

In a cautionary twist, the filing warns creditors about ongoing phishing attempts. It provides guidance on recognizing legitimate contacts from the post-effective date debtors and their advisors.

Celsius Network’s court filing isn’t just a legal document; it’s a comprehensive story that unfolds the company’s commitment to its creditors. Distributing over $2 billion in cryptocurrency isn’t just a financial move; it’s Celsius’s way of navigating bankruptcy with transparency, dedication, and finesse.

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