Celsius Bankruptcy Trustee Distributes $2.5 Billion to Creditors

The bankruptcy administrator of the lending platform Celsius has distributed two-thirds of the funds allocated to clients, according to CoinDesk.

Payouts amounting to $2.53 billion (93% of the expected amount) have been made in digital assets and fiat currency, based on the exchange rate as of January 16.

A total of 251,000 creditors have received payments, while another 121,000 are awaiting compensation. The average reimbursement is approximately $1,500.

“Approximately 64,000 from the latter group received less than $100, and another 41,000 creditors received between $100 and $1,000. Given the small amounts involved, many of them may lack the incentive to take the necessary steps to successfully claim the distribution,” the statement reads.

The payouts began 18 months after the suspension of withdrawals, exchanges, and transfers between accounts due to “extreme market conditions.”

In November, Celsius presented a revised reorganization plan, which involves transforming into a cryptocurrency mining business.

The new plan marks a shift from an earlier proposal that also included the establishment of a staking program.

In January, Celsius demanded that large creditors (those with $100,000 or more) return 27.5% of the amounts withdrawn in the three months prior to the bankruptcy filing.

In the same month, the bankruptcy court approved a plan to distribute over $3 billion among creditors.

Back in August, Celsius filed a lawsuit against Tether, seeking the return of $2.4 billion.