Lending platform Celsius returns $2 billion in BTC and ETH to creditors

This is according to a report by law firm Kirkland & Ellis

19.02.2024 - 15:05

239

2 min

What’s new? Lending crypto platform Celsius has distributed $2 billion in cryptocurrencies, transferring 20 255,66 BTC and 301 33,77 ETH to 171 672 creditors, according to a report by law firm Kirkland & Ellis. The company began the process in late January and plans to return the remaining funds in BTC, ETH, and fiat to customers.

Kirkland & Ellis report

What else is known? Nearly 75% of the BTC/ETH that was supposed to be distributed via PayPal/Venmo and Coinbase has already arrived in creditor accounts, Kirkland & Ellis said.

Former Celsius users who withdrew funds from the platform in the 90 days leading up to the bankruptcy were reminded that they must repay some of the funds they withdrew before their claims can be distributed.

The company will send wire transfers to its overseas creditors who are eligible to receive cash but are in jurisdictions where wire transfers are not valid.

What is known about Celsius? Launched in 2017, Celsius grew substantially during the COVID-19 pandemic amid the crypto market rally, attracting customers with easy access to credit and high-interest deposits.

Celsius then lent these deposits to institutional investors at interest, but as a result of the collapse of the crypto market, the platform faced a massive outflow of deposits. After several failed restructuring attempts, it filed for bankruptcy in July 2022.

At the same time, the platform received two lawsuits for organizing a Ponzi scheme, and the media wrote that it lost millions of dollars of clients on high-risk schemes. Later, the US authorities accused the former head of Celsius Alex Mashinsky of market manipulation, and the platform itself was fined $4,7 billion. Last September, former Celsius senior executive Roni Cohen-Pavon admitted to manipulating the rate of the native token CEL.

Author: