Celsius distributes $2.53 billion, some creditors leave funds unclaimed

Bankrupt crypto lender Celsius has repaid approximately $2.53 billion to 251,000 creditors, according to an Aug. 26 court filing.

This repayment represents around two-thirds of eligible creditors by number and about 93% of the total eligible value.

The payment breakdown revealed that Celsius disbursed $1.43 billion in crypto via PayPal/Venmo, $917 million in crypto through Coinbase, and $178 million in cash transfers.

Celsius’ bankruptcy plan involved distributing more than $3 billion to over 375,000 creditors across 165 countries. This means a significant amount of the defunct firm’s creditors still have yet to claim their assets.

Unclaimed distributions

The failed lender stated that 121,000 eligible creditors have yet to claim their distributions —each with an average distribution of approximately $1,500.

Around 64,000 have distributions of less than $100, while 41,000 have amounts between $100 and $1,000. According to Celsius, the small sums may not motivate many creditors to complete the required steps to claim their distributions.

The bankruptcy administrator plans to retry distributions via Coinbase every two weeks while PayPal claim codes remain redeemable at all times. In addition, it stated that cash distributions are
attempted approximately once per week

However, the Plan Administrator does not expect all creditors to claim their funds. Unclaimed amounts will eventually be redistributed to other creditors as outlined in the reorganization plan.

Ionic digital

Under Celsius’s reorganization plan, funds have been directed to create Ionic Digital, a new Bitcoin mining venture.

Earlier today, the BTC mining company announced that Building 1 at its Cedarvale, Texas facility is live. This newly built structure is the first of four cutting-edge 50-megawatt Bitcoin mining facilities planned for the location.

It accommodates 15,552 Bitcoin mining rigs, combining new and relocated equipment for maximum efficiency.

The Cedarvale site is set to host approximately 66,000 miners, powered by 215 megawatts of electricity. Once fully operational, the site will boost the company’s total capacity, which was around seven exahash as of July 31, 2024.

Ionic Digital said its total Bitcoin holdings stood at 1,891.68 as of the end of July.

Mentioned in this article