Thomas Daniels
The insolvent digital currency enterprise, Celsius, has earmarked crypto assets valued at $2 billion for distribution among a multitude of its creditors.
This allocation, executed via PayPal and Coinbase, is a crucial component of Celsius Network’s comprehensive approach to fulfilling its financial commitments to creditors. Celsius progresses with creditor repayment efforts following a noteworthy update in a legal document by Kirkland & Ellis, the esteemed law firm from Chicago guiding Celsius. This update comes on the heels of Celsius’s announcement of its recovery from insolvency, a journey that began in July 2022.
Kirkland & Ellis revealed that U.S.-based cryptocurrency owners receive their distributions through PayPal, whereas Coinbase acts as the conduit for recipients abroad. The legal advisors have verified the allocation of cryptocurrencies worth $2 billion to creditors, encompassing 20,255.66 Bitcoin and 301,338.77 Ether.
Opting to distribute cryptocurrencies directly to the vast majority of creditors—a departure from the traditional cash distributions in Chapter 11 bankruptcy cases—has expedited the payout process, according to the court document.
The legal team articulated that the debtors have initiated a worldwide distribution scheme involving hundreds of thousands of creditors, smoothly navigating without notable logistical or security setbacks.
However, account holders dissenting with the restructuring proposal will be on hold for fund distribution until their disputes are settled.
The document also warns of potential obstacles for certain account holders in receiving their shares, especially if Coinbase or PayPal flags any Anti-Money Laundering (AML) or compliance concerns.
Furthermore, it clarifies that the distribution agents reserve the right to withhold payments from individuals they deem non-compliant with the necessary regulatory and other stipulations.
