Celsius Has Paid Out Two-Thirds of Creditor Claims But 121,000 Still Eligible
Celsius has paid out roughly $2 billion to creditors. Photo by Money Knack on Unsplash.
Key Takeaways
- Celsius has repaid around $2 billion worth of creditors’ claims.
- In total, 93% of the value of claims has been repaid to 68% of eligible creditors.
- Around 121,000 claimants are still eligible for a share of the remaining $200 million.
Celsius has made significant progress in compensating its creditors, disbursing over two-thirds of approved claims. According to a recent court filing , the bankrupt crypto lender has paid out approximately $2 billion to creditors so far.
However, despite this progress, around 121,000 claimants still haven’t received their share, with over $1 billion worth of claims yet to be resolved.
Celsius’ Complex Recovery Process
Celsius’ bankruptcy plan involves the distribution of cryptocurrency, cash, and shares in a new entity, MiningCo, to around 375,000 creditors in over 165 different countries.
As the court filing notes, many of the unresolved claims are tied up in disputes over the value of assets or involve complex questions of ownership and priority.
Further complicating matters, many creditors have expressed dissatisfaction with how claims have been calculated and may be waiting for a better offer pending the outcome of ongoing legal challenges.
Under the current bankruptcy plan, claims are calculated based on the dollar value of deposits on July 13, 2022. However, some claimants have argued that they should be repaid the amount of crypto they held on the platform like-for-like.
Celsius Payouts by Distribution Type
| Distribution Agent | Amount of Claims Currently Eligible fodistributionon |
Amount Successfully Distributed |
Percent of Value Successfully Distributed |
Percent of Creditors Who Successfully Received a Distribution |
|---|---|---|---|---|
| PayPal/Venmo | $1.50 billion | $1.43 billion | 96% | 70% |
| Coinbase | $997 million | $917 million | 92% | 69% |
| Cash (Wire/Check) | $232 million | $178 million | 77% | 26% |
| TOTAL: | $2.73 billion | $2.53 billion | 93% | 68% |
Mostly Small Claims Remaining
Although only 68% of eligible claims have been processed, 93% of recoverable assets have been distributed. This suggests that the remaining creditors have mostly small claims.
Celsius’ administrators said in the latest filing that the average value of the remaining claims is $1,500. Of the approximately 121,000 creditors who have not yet successfully claimed a distribution, approximately 64,000 have a distribution of less than $100.
Around 41,000 more have a distribution of between $100 and $1,000, leaving just 16,000 claims valued at over $1,000.
“Given the small amounts at issue for many of these creditors, they may not be incentivized to take the steps needed to successfully claim a distribution,” Celsius said.
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