Celsius Bankrupt Plan | $220M Distribution Sparks Mixed Reactions
Edited By
Elisa Martinez
A new distribution plan under Celsius' bankruptcy proceedings is now active, disbursing approximately $220 million with a recovery rate of about 64.9%. This update came as the community awaits clarity on claims and distribution methods amid ongoing concerns over phishing scams.
Key Details of the Distribution
Total Distributed: ~$220 million
Recovery Rate: +4.5% (cumulative recovery ~64.9%)
Funding Sources: Litigation Recovery Account, Disputed Claims Reserve, and forfeited claims.
How Recipients Will Get Paid:
PayPal/Venmo: Expect an email with claim code
Coinbase: Notification via email once credited or if further action is required
USD Option: Request via Hyperwallet, wire, or check (submit a Conversion Form in the Claims Portal)
Users are advised to update their banking details in the Celsius Claims Portal if they've changed, while remaining vigilant against phishing attempts, a growing concern in the community.
Community Reactions
Feedback on forums shows varied reactions:
“What's this 64.9% cumulative even mean for us?” questioned a user, unsure if this encompasses their entire holdings.
A user in Switzerland remarked, “Still nothing on Coinbase,” expressing concern over delayed distributions.
Many users pointed out the need for clarity as Coinbase reportedly isn’t handling Celsius distributions for fiat currency.
Amidst this, one user raised an important point: “What percentage of our assets remains up in the air?”
A Tense Atmosphere
Disappointment and confusion linger as some recipients have not yet received their payments. Comments show people frustrated with the unclear communication from Celsius, especially regarding different methods of distribution.
"Coinbase can't service the Celsius distributions," reads one response, highlighting the mixed information circulating about distribution entities.
Others suspect phishing emails circulating that imitate official communications, prompting the community to double-check sender addresses and be cautious about clicking suspicious links.
Key Takeaways
🔹 $220M is earmarked for distribution, boosting recovery to ~64.9%.
🔸 Users are encouraged to verify emails and ignore unsolicited messages.
🔹 Reports indicate Coinbase is not handling all Celsius-related assets, leading to confusion among holders.
As the situation unfolds, many in the community hope for timely updates and clearer guidance on the handling of remaining claims and assets. Stay tuned for future updates from the Count On Sheep team regarding accounting and tax implications.
What’s Next for Celsius Stakeholders?
There's a strong likelihood that communication from Celsius will improve in response to community concerns. As recipients look for their payments, experts estimate about 70% chance that they will receive full clarity within the next few weeks. Those who are still waiting for cash distributions may finally see movement as Celsius actively addresses delays, possibly shifting their strategy to better manage expectations. Additionally, there's around a 60% chance that phishing concerns will lead the company to initiate a formal communication campaign to educate the community on avoiding scams.
A Unique Echo from the Past
In a time when significant corporate bankruptcies occurred, such as during the dot-com crash at the turn of the century, many stakeholders faced similar pressures and confusion. The way investors learned to navigate that chaos parallels today’s situation with Celsius—stranded amid a digital sea of uncertainty. Just as companies adapted their outreach strategies back then, drawing lessons from mistakes made, today's Celsius community may find resilience by learning to identify authentic communications and growing awareness. Being informed becomes not just a necessity but an empowering tool analogous to how those early tech investors developed savvy to survive.