Celsius Network, once a major player in the crypto space, filed for bankruptcy in July 2022 after pausing user withdrawals due to financial difficulties linked to a significant drop in the value of its native token.

The firm exited Chapter 11 bankruptcy in February 2023, completing a reorganization plan that involved distributing over $3 billion in total to creditors.

As part of its bankruptcy proceedings, Celsius has repaid approximately $2.53 billion to 251,000 creditors, which accounts for 93% of the funds owed.

The distribution process began in January 2024 and included payments through various platforms such as Coinbase, PayPal, and cash transfers.

Celsius has implemented a routine distribution process, attempting bi-weekly payments via Coinbase and allowing PayPal claim codes for redemption.

The administrator has attempted over 2.7 million distributions for approximately 372,000 eligible creditors, highlighting the complexity of the process.

The Plan Administrator does not expect all creditors to claim their funds, and any unclaimed amounts will be redistributed to other creditors.

In addition to repaying creditors, Celsius settled with U.S. regulatory bodies for $4.7 billion in fines, further complicating its financial landscape.

Former CEO Alex Mashinsky faces federal fraud charges and is currently out on a $40 million bond, with his trial set for September 2024.

Celsius has initiated lawsuits against various entities, including Tether, to recover funds for creditors, reflecting ongoing legal challenges.

Despite the repayment distributions, the crypto market remains stable, indicating resilience amid the ongoing bankruptcy proceedings.

This repayment is seen as a positive development for the crypto industry, coinciding with the ongoing bankruptcy proceedings of Mt. Gox, which owed more than $9.4 billion to creditors.