The Celsius Network bankruptcy administrator has successfully distributed over $2.53 billion to approximately 251,000 creditors, marking a pivotal moment in one of the most significant crypto bankruptcy cases to date.
This distribution, which includes liquid cryptocurrency and cash, represents a major stride toward resolving creditor claims and addressing the financial fallout from the now-defunct lending platform.
The latest update, filed with the U.S. Bankruptcy Court for the Southern District of New York, reveals that as of August 2024, more than $2.5 billion in eligible value has been disbursed, covering around two-thirds of eligible creditors and accounting for 93% of the total owed value. The asset valuations are based on prices as of January 16.
The bankruptcy administrator is expected to continue efforts to ensure that all eligible creditors receive their due payments in the coming months. The Celsius case, known for its complexity, involves distributing assets to approximately 375,000 creditors across more than 165 countries.
Regulatory challenges have further complicated the proceedings, as authorities have pursued enforcement actions against Celsius for regulatory non-compliance.
Despite significant progress, the process is far from complete. As of the latest report, 121,000 eligible creditors have yet to claim their distributions, with an average payout of about $1,500 each. Many of these unclaimed distributions involve smaller amounts—about 64,000 creditors are owed less than $100, while another 41,000 have claims between $100 and $1,000.
The administrator has noted that the relatively low value of these claims may discourage some creditors from completing the necessary steps to receive their distributions.
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