Celsius distributed $2 billion worth of cryptocurrencies to 172,000 lenders

Crypto lender Celsius announced that it has successfully distributed a total of $2 billion worth of cryptocurrencies, including 20,255 BTC and 301,338 ETH, to compliant lenders following its exit from bankruptcy proceedings. The law firm Kirkland & Ellis, representing Celsius, provided an update on the distribution process, which involved the collaboration of payment giant PayPal for American lenders and cryptocurrency exchange Coinbase for foreign lenders. Over 75% of the allocated BTC and ETH has already been collected by cryptocurrency holders through these platforms, according to Kirkland & Ellis.

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.