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- 1 Celsius Network is returning creditors’ funds by leveraging the platform support of Coinbase and PayPal.
- 2 Around $2 Billion in cryptocurrencies, including 20,255 Bitcoin, has been sent to the platform’s creditors.
- 3 The filing says that some creditors might not receive funds if Coinbase and PayPal identify anti-money laundering (AML) or compliance concerns.
Celsius, a giant cryptocurrency lender that filed bankruptcy earlier this year, informed that all its eligible creditors received back their cryptocurrency holdings.
The lending firm distributed a total of $2 Billion, the funds to its creditors in the United States with the help of PayPal, and creditors from other regions received the funds from Coinbase.
Celsius’s attorney highlighted in the recent court filing that 20,255.66 Bitcoins were also included in the cryptocurrency transferred to the creditors.
The filing further highlights that the creditors who did not consent to the restructuring plan will receive their crypto assets once their claims are resolved.
Some creditors might not receive funds if Coinbase and PayPal identify anti-money laundering (AML) or compliance concerns. The filing details that the fund distributors have supreme power to reject the payment if some account holders fail to meet their criteria.
Following the acquisition deal in the fourth quarter of 2023, Celsius was renamed NewCo. Fahrenheit LLC acquired the company for millions of dollars. Market observers claim FTX and TerraLuna are the main factors that led to the demise of Celsius Network.
Celsius Network and a few leading companies also filed for bankruptcy following the unprecedented demise of the centralized cryptocurrency exchange developed by Sam Bankman Fried.
Before its demise, FTX was among the leaders of the centralized crypto exchange category and, at the time, was the second biggest crypto exchange in the market.
Most importantly, the crypto moguls criticize FTX for the sudden downfall of several companies. However, discussing FTX and not mentioning the name of Binance does not do justice to the talk.
Some available data sources state that Binance invested a massive chunk in the FTX during its early stage; the investment was made under a strategic partnership. However, the amount of investment remains undisclosed even after the disastrous bankruptcy of FTX.
Crypto Market Update
Since the past few days, the market capitalization of the entire cryptocurrency market has flourished rapidly. Still, on February 17, 2024, a loss of over $18 Billion was observed, and when writing, the market cap was $1.833 Trillion.
Bitcoin, the market leader, has also reflected a sudden price decline on February 11, 2024. It was trading at the boundary of $52k, but BTC was trading at $51,670 as of writing.
Despite the intraday decline, Bitcoin price grew by more than 20% in the one quarter; analysts claim that the constant positivity in the price of BTC is backed by the upcoming 4th Bitcoin halving, likely to occur in April 2024.
Since its approval, the Bitcoin spot ETF has accumulated $37.29 Billion in Asset Under Management (AUM), a further positive momentum is expected to continue in the trading price of Bitcoin.
Bitcoin spot ETF was the first crypto ETF, and now Ethereum is also running on the same path. There are claims that Ether spot ETF might get regulatory approval by the end of May 2024.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
