About 20,500 Bitcoin and 301,000 Ether tokens have reportedly been transferred among qualified creditors without any problems with security or functionality, according to the court document. The majority of qualified creditors have already received their liquid bitcoin allocations from Celsius’s two distribution agents, the cryptocurrency exchange Coinbase and the massive payments company PayPal, according to the bankrupt cryptocurrency lender. The legal team for Celsius, Kirkland & Ellis, recently filed a court document with an update on the creditor distributions specified in the restructuring plan. This comes after Celsius filed for bankruptcy in July 2022 and just announced that the company had emerged from that status.
Celsius Legal Team Confirms That 75% BTC/ETH Has Been Obtained
Celsius legal team, Kirkland & Ellis state that Coinbase serves as the distribution agent for cryptocurrency distributions to holders abroad, while PayPal facilitates distributions to US holders. $2 billion worth of cryptocurrency, including 20,255.66 Bitcoin BTC tickers down $51,655 and 301,338.77 Ether ETH tickers down $2,802, have reportedly been given to creditors, according to the attorneys.
“As of this date, a sizable portion of Holders have obtained their liquid cryptocurrency via Coinbase and PayPal/Venmo with success: around 75% of the BTC/ETH that was scheduled to be distributed via Coinbase and PayPal/Venmo has now been obtained.”
Nonetheless, the document clarified that account holders who declined the restructuring plan would not be paid until their specific claims were settled. Furthermore, it said that if Coinbase or PayPal raises any red flags related to compliance or Anti-Money Laundering (AML), some account holders may encounter difficulties obtaining their distribution. According to the petition, “Distribution agents are free to decide not to distribute to anyone they feel does not comply with their compliance standards and other guidelines.” According to a recent article, the U.S. government requested a Curcio hearing, during which the court is expected to inquire into possible conflicts of interest and the reasons for the involvement of both attorneys in the cases of Bankman-Fried and Mashinsky.
