Celsius: $2B Crypto Distribution to 172K Creditors

Crypto lender Celsius has announced that most eligible creditors have now received their liquid cryptocurrency distributions from distribution agents PayPal and Coinbase. According to the legal team representing Celsius, $2 billion worth of crypto has been claimed, including over 20,000 Bitcoin and more than 300,000 Ethereum. Account holders who did not agree to the restructuring plan will not receive any distributions until their claims are resolved. Certain account holders may also face challenges in receiving their distribution if Coinbase or PayPal flag any anti-money laundering or compliance issues. The actions outlined in the restructuring plan have sparked speculation about their potential impact on the broader crypto market. Celsius began recalling and rebalancing its crypto assets to ensure timely distributions to creditors. The former CEO of Celsius, Alex Mashinsky, is scheduled to stand trial in September 2024 and his legal team is facing scrutiny for also representing the former CEO of bankrupt exchange FTX. U.S. prosecutors have raised concerns about a potential conflict of interest and have called for a hearing to address the matter.