Cryptocurrency lending platform Celsius, which filed for bankruptcy in July 2022, has announced the completion of distributing liquid crypto assets to most eligible creditors. 

The distributions were handled by PayPal and crypto exchange Coinbase, acting as distribution agents, as detailed in a recent court filing by the legal representatives Kirkland & Ellis.

Kirkland & Ellis updated the creditor payments and said that $2 billion worth of cryptocurrency had been sent to creditors. This includes 20,255.66 Bitcoin and 301,338.77 Ether. In the US, PayPal handled payments, while Coinbase handled distributions in other countries.

Challenges Ahead for Celsius Account Holders 

The filing made it clear, though, that account holders who don’t agree with the restructuring plan won’t get any money until their claims are settled.

Additionally, some account holders may have trouble getting distributions if Coinbase or PayPal flags their account for Anti-Money Laundering (AML) or compliance issues.

In the crypto sector, individuals have been speculating about what Celsius’s actions mean for the market as a whole. Nansen, a blockchain analytics company, pointed out that Celsius owns a large amount of the Ether in the delayed withdrawal queue.

Celsius went to court in October 2023 to get permission for its plan to restructure. It wanted to pay back its debts by the end of that year. Alex Mashinsky, who used to be Celsius’s CEO, will be tried in September 2024 for his role in the company’s failure.

But because they are also defending Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, his legal team is being closely examined for possible conflicts of interest. Prosecutors in the United States have concerns about lawyers Marc Mukasey and Torrey Young, who have filed appearances in the criminal cases against both of the former crypto CEOs.