Celsius Holds $5M On-chain Balance Amid $2.5B Bankruptcy Distribution

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Crypto firm Celsius has distributed over $2.5 billion to creditors in its ongoing bankruptcy process. On-chain data shows the firm now holds $5 million amid the recent distributions. The company’s bankruptcy distribution plan which dragged on for months is now underway, per new filing. 

Celsius On-chain Balance Drops to $5M 

Celsius bankruptcy distribution plan has seen over $2.5 billion sent to eligible creditors. According to crypto analytics firm Arkham Intelligence, the company holds only $5 million in on-chain balances. Most users expressed delight concerning the distribution process to creditors calling on remaining investors to claim their payouts. 

In a recent filing, Celsius bankruptcy administrator announced payment of $2.53 billion to 251,000 creditors covering about 93% of total values. However, this figure is only two-thirds of eligible creditors with another 121,000 creditors yet to claim their funds. Per the filing, the reason for the delay in these classes of creditors could be due to the small amounts of their holdings.

“Approximately 64,000 of these remaining creditors have a distribution of less than $100, and approximately 41,000 more have a distribution of between $100 and $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.”

These payments made by the bankrupt crypto lender were cash and liquid digital assets at Jan 16 prices. This year, the prices of crypto assets saw an uptick following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).

Firm’s Bankruptcy Saga 

The company’s crisis rocked the crypto ecosystem in 2022 adding the industry’s woes alongside Terra Network and crypto exchange FTX. The crypto lender once had over 1.7 million users with over $25 billion in assets under management (AUM). 

The company’s popularity was linked to the wider adoption of decentralized finance (DeFi) before its bankruptcy in July 2022. As a result, the bankruptcy case rolled out with the court approving the final distribution plan this year. Recently, Celsius tapped PayPal’s Hyperwallet services to enable distributions. 

The post Celsius Holds $5M On-chain Balance Amid $2.5B Bankruptcy Distribution appeared first on CoinGape.

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