Celsius distributes $2.53 billion, some creditors leave funds unclaimed News ▸ US ▸ Celsius ▸ Bitcoin ▸ Bankruptcy
Celsius distributes $2.53 billion, some creditors leave funds unclaimed
Ionic Digital, a new Bitcoin mining company borne out of Celsius bankruptcy, said it has energized a facility in Texas.
2 min read
Updated: Aug. 27, 2024 at 2:08 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt crypto lender Celsius has repaid approximately $2.53 billion to 251,000 creditors, according to an Aug. 26 court filing.
This repayment represents around two-thirds of eligible creditors by number and about 93% of the total eligible value.
The payment breakdown revealed that Celsius disbursed $1.43 billion in crypto via PayPal/Venmo, $917 million in crypto through Coinbase, and $178 million in cash transfers.
Celsius’ bankruptcy plan involved distributing more than $3 billion to over 375,000 creditors across 165 countries. This means a significant amount of the defunct firm’s creditors still have yet to claim their assets.
Unclaimed distributions
The failed lender stated that 121,000 eligible creditors have yet to claim their distributions —each with an average distribution of approximately $1,500.
Around 64,000 have distributions of less than $100, while 41,000 have amounts between $100 and $1,000. According to Celsius, the small sums may not motivate many creditors to complete the required steps to claim their distributions.
The bankruptcy administrator plans to retry distributions via Coinbase every two weeks while PayPal claim codes remain redeemable at all times. In addition, it stated that cash distributions are
attempted approximately once per week
However, the Plan Administrator does not expect all creditors to claim their funds. Unclaimed amounts will eventually be redistributed to other creditors as outlined in the reorganization plan.
Ionic digital
Under Celsius’s reorganization plan, funds have been directed to create Ionic Digital, a new Bitcoin mining venture.
Earlier today, the BTC mining company announced that Building 1 at its Cedarvale, Texas facility is live. This newly built structure is the first of four cutting-edge 50-megawatt Bitcoin mining facilities planned for the location.
It accommodates 15,552 Bitcoin mining rigs, combining new and relocated equipment for maximum efficiency.
The Cedarvale site is set to host approximately 66,000 miners, powered by 215 megawatts of electricity. Once fully operational, the site will boost the company’s total capacity, which was around seven exahash as of July 31, 2024.
Ionic Digital said its total Bitcoin holdings stood at 1,891.68 as of the end of July.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Ionic Digital
Ionic Digital is North America’s newest bitcoin miner and emerging innovator in energy monetization.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.