Defunct crypto lending platform Celsius Network is paying back billions to creditors.
Last year, a US judge approved a bankruptcy plan for Celsius after it filed for bankruptcy in July 2022 when its token plummeted by 99% and it could not fulfill withdrawals.
The company, dubbed “NewCo,” was granted a $1.25 billion balance sheet, $450 million of which was liquid crypto.
Earlier this year, it was announced that the troubled crypto lending platform avoided Chapter 11 bankruptcy with a plan to distribute $3 billion worth of crypto assets and fiat money to creditors.
Celsius also planned to create a new Bitcoin (BTC) mining company, Ionic Digital, Inc., under its creditors’ control.
Now, according to new official court files, Celsius has paid back creditors $2.53 billion.
“Despite these challenges, the Plan Administrator has now overcome many of the most common hurdles faced by creditors and is pleased to report that the initial distribution to eligible creditors has been successful for a substantial majority of creditors (both by dollar amount and number), as outlined in more detail in the below table –over 251,000 creditors have received over $2.53 billion in value of Liquid Cryptocurrency and Cash (at prices set as of January 16, 2024 – that Liquid Cryptocurrency is worth much more at today’s market prices):”
The full document can be read here.