Celsius Holds $5M On-chain Balance Amid $2.5B Bankruptcy Distribution

As a researcher who has been closely following the tumultuous journey of Celsius since its collapse in 2022, I must say that the recent developments have been nothing short of fascinating. Watching the company’s on-chain balance plummet from billions to mere millions is a stark reminder of the volatile nature of the crypto world.


Crypto lending platform Celsius has given out more than 2.5 billion dollars to its creditors during their ongoing bankruptcy proceedings. As a result of recent distributions, data from the blockchain shows that Celsius currently holds approximately 5 million dollars. The company’s bankruptcy distribution plan, which took several months to finalize, is now being carried out, as indicated in their latest filing.

Celsius On-chain Balance Drops to $5M 

The Celsius bankruptcy allocation scheme has dispersed more than $2.5 billion to qualified creditors, as reported by crypto intelligence firm Arkham Intelligence. It’s worth noting that the company only retains about $5 million in on-chain balances. Many users have shown satisfaction with the distribution procedure for creditors, urging remaining investors to collect their payouts.

In a recent court submission, the administrator handling Celsius’ bankruptcy revealed that they have paid out approximately $2.53 billion to 251,000 creditors, which represents around 93% of the total value owed. However, this amount is only two-thirds of all eligible creditors, with about 121,000 creditors still waiting to receive their funds. According to the filing, the reason for the delay in these cases may be due to the relatively small amounts that these creditors hold.

“Roughly 64,000 of the remaining creditors stand to receive less than $100 each, and around 41,000 could get between $100 and $1,000. Since the amounts involved for many of these creditors are relatively small, they might not feel motivated to take the necessary steps to effectively claim their share.”

As a researcher examining the transactions of a failed cryptocurrency lender, I’ve discovered that the payments made on January 16th consisted of cash and digitally-held assets, valued at prices from that day. Interestingly, throughout this year, we’ve witnessed a surge in the value of various crypto assets, primarily due to the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).

LATEST: CELSIUS HAS ONLY $5M REMAINING ON-CHAIN

As stated in court documents, the Celsius Network has so far dispersed more than 2.5 billion dollars, which accounts for approximately 93% of the funds available to over a quarter-million individual claimants.

Celsius began distributing over $3B of assets to creditors in January of this year – and now…

— Arkham (@ArkhamIntel) August 27, 2024

Firm’s Bankruptcy Saga 

2022 saw a significant shake-up for the cryptocurrency sector, as the company’s turmoil joined the challenges faced by Terra Network and crypto exchange FTX. This influential lender boasted a user base of over 1.7 million, managing assets worth more than $25 billion.

Before filing for bankruptcy in July 2022, the company’s success was closely tied to the increasing use of Decentralized Finance (DeFi). Consequently, the bankruptcy proceedings were initiated, and this year, the court approved the final distribution plan. Lately, Celsius has turned to PayPal’s Hyperwallet services to facilitate these distributions.

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2024-08-27 18:14