This comes after Celsius recently announced that the company has emerged from bankruptcy.
PayPal is in charge of distributing cryptocurrency to holders in the U.S.
Most qualified creditors have already received their liquid crypto payments via PayPal and Coinbase, the two distribution agents of the defunct crypto lender Celsius, as per the announcement.
The legal team representing Celsius, Kirkland & Ellis, recently updated the court on the payouts to creditors as stated in the restructuring proposal in a court filing. This comes after Celsius recently announced that the company has emerged from bankruptcy, a process that had begun in July 2022.
Distribution Via Coinbase and PayPal
Kirkland & Ellis states that Coinbase is in charge of distributing cryptocurrency to holders in other countries, while PayPal handles payouts to US-based holders. Also, as per the announcement by the attorneys, $2 billion worth of cryptocurrency, including 20,255.66 BTC and 301,338.77 ETH, has been dispersed among the creditors.
Account holders who objected to the reorganization plan will not get their money until their claims are settled, according to the filing. On top of that, it said that if Coinbase or PayPal detects any compliance or Anti-Money Laundering (AML) concerns, certain account holders would have trouble getting their distribution.
Moreover, distribution agents are given the authority to withhold payouts to anybody they determine does not meet their compliance and other conditions, according to the filing.
Also, the potential effects of the reorganization plan’s measures on the cryptocurrency market as a whole have been the subject of much conjecture within the sector. In order to make sure that creditors get their payments on time, Celsius began rebalancing and recalling crypto assets on January 5.