However, those creditors who did not agree with the approved reorganization plan will not receive their allocated cryptocurrencies until their individual claims have been resolved. Furthermore, Coinbase and PayPal may report any violations of anti-money laundering (AML) regulations or other regulatory requirements, potentially causing delays in fund distribution for some lenders.
It’s worth mentioning that in July 2023, the court granted Celsius the authority to convert its assets into more liquid cryptocurrencies, namely Bitcoin and Ethereum. Additionally, the former CEO of Celsius, Alex Mashinsky, is scheduled to go on trial in September 2024 after pleading not guilty to defrauding investors. Last fall, Mashinsky requested the dismissal of charges brought against him by the US Federal Trade Commission.