Celsius Network LLC, a crypto financier currently on the brink of bankruptcy since 2022, has announced an innovative plan to distribute over $2 billion in crypto to creditors. This notable revelation, detailed in a recent court filing, not only sheds light on the revised Chapter 11 plan, but also highlights the company's commitment to unconventional payment approaches. .
Let's dig into the details of this court filing to uncover its key objectives and goals.
solve the plan
Court documents dated February 15, 2024 reveal Celsius' own plan to begin January 31, 2024, and begin a revised Chapter 11 plan. What are the standout features? Celsius is choosing to distribute cryptocurrencies over the traditional cash route.
Recognizing the extended nature of Chapter 11 litigation, debtors since the effective date claim in court filings that they have been unable to make worldwide distributions without encountering “significant operational or security problems.” It emphasizes that the process has started successfully.
The filing addresses concerns about the convenience class opt-in during the September 2023 vote, and provides assurances that “all such creditors have in fact opted in to the convenience class,” according to the debtor's meticulous records. ing.
Also read: FTX CEO SBF ordered to appear amid investigation into Celsius connection
Liquid cryptocurrency distribution
Quoting directly from the court filing: “As of the date of this document, eligible holders who have PayPal/Venmo as their assigned reseller should have received an email from Stretto with detailed instructions.”
The application documents the requested distributions in particular detail.
- PayPal/Venmo distribution –
- 336,841 debt distributions (each creditor will receive one BTC distribution and one ETH distribution)
- 171,672 creditors
- 20,255.66BTC
- 301,338.77 ETH
- $2 billion worth of virtual currency
- Coinbase Distribution – Eligible holders with Coinbase as their assigned distribution agent received an email notifying them that funds have been deposited into their Coinbase account.
Troubleshooting tips
For those who are facing problems in claiming their distribution of liquid cryptocurrencies, there is no need to worry. This filing provides assurance that Celsius and his distributors are proactively resolving billing errors to ensure a smooth sailing experience for all creditors.
But that's not all! The filing reveals issues with cash distributions in U.S. dollars, and the debtor is considering wire transfers to address concerns about check deposits in certain jurisdictions. This means that Celsius Networks' comprehensive financial strategy is being implemented.
The filing also outlines expected communications from Odyssey Transfer and Trust Company regarding distributions of MiningCo common stock.
Beware of phishing!
In an alarming twist, the filing warns creditors of an ongoing phishing operation. It provides guidance on recognizing legitimate contacts from debtors and their advisors after the effective date.
Celsius Network's court filing is more than just a legal document. This is a comprehensive story that reveals the company's commitment to its creditors. The distribution of over $2 billion in cryptocurrencies is more than just an economic move. It's Celsius' way of navigating bankruptcy with transparency, dedication, and skill.
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