Celsius has made some progress in paying back the money it owes to its creditors. The company has now repaid about 93% of the eligible funds, totaling $2.53 billion, to over 251,000 creditors, according to recent court filings.
Celsius was declared bankrupt in July 2022 after allowing users to earn interest on their cryptocurrency deposits.
At its peak, the company managed $25 billion in assets and had 1.7 million users. However, due to a downturn in the crypto market and legal issues, many users were unable to access their funds for more than a year.
This plan included creating a new company, NewCo, which received $450 million in funding. NewCo, now called Ionic Digital, will focus on Bitcoin mining and staking. Ownership of this new company has been given to Celsius’s former users and creditors.
However, not all creditors have claimed their repayments yet. About 121,000 creditors, many of whom are owed smaller amounts, still need to claim their share. For example, 64,000 users are owed less than $100, while another 41,000 are owed between $100 and $1,000.
The court noted that these smaller creditors might be less motivated to complete the steps needed to claim their money.
Moreover, Celsius is also dealing with ongoing legal issues, including a lawsuit against Tether over the alleged improper liquidation of $2.4 billion in Bitcoin before going bankrupt
