Celsius Bankruptcy Update: 121,000 Creditors Yet to Claim Funds, as Mt. Gox Recovery Efforts Materialize

In the latest update on the Celsius bankruptcy case, the administrator has revealed that more than 121,000 creditors have not yet claimed their funds.

Celsius has reportedly repaid about two-thirds of its eligible customers, disbursing approximately $2.53 billion to 251,000 creditors as part of its ongoing bankruptcy proceedings.

This repayment covers roughly 84% of the $3 billion in assets owed to over 375,000 creditors by the now-defunct crypto lender.

The progress in these payments marks a significant milestone for the broader cryptocurrency industry, especially in light of the concurrent bankruptcy proceedings of the Mt. Gox exchange. The exchange still owes $9.4 billion in crypto to its 127,000 creditors, and after a decade, these creditors are also seeing recovery efforts materialize.

However, not every creditor has volunteered to claim their due cryptocurrency. Of those still to claim, some 64,000 have claims ranging from $100 to $1,000, and another 41,000 have claims less than $100.

Planning to attempt distributions through Coinbase every two weeks, the bankruptcy administrator for Celsius has also pledged continuous efforts to deliver funds to creditors. PayPal claim codes will also stay always creditable.

In a recent statement, the administrator underlined that over 2.7 million distribution attempts have been made for the approximately 372,000 currently qualified creditors.

This follows Celsius’s July 2022 bankruptcy filing, not long after user withdrawals were halted. Following a sharp decline in the value of their native token, Celsius (CEL), the suspension was ascribed to financial constraints deemed a calculated response to better meet future withdrawal liabilities.

The bankruptcy process has been ongoing for some time. Celsius promised to pay the Federal Trade Commission of the United States $4.7 billion in fines. The Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Department of Justice have struck other settlements.

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