Celsius Announces App Closure Plan and Distribution of $2.03 Billion Crypto Assets to Creditors

Celsius, a troubled cryptocurrency lending platform, has unveiled its revised disclosure statement, outlining a strategy to shut down its application within 90 days. As part of a broader effort to streamline operations and enhance the user experience, Celsius also plans to allocate approximately $2.03 billion worth of crypto assets to eligible creditors. Let’s delve into the details of this significant development.

Celsius’ Strategic Move

Celsius, the cryptocurrency lending platform, has revealed its intention to close its application within the next 90 days, marking a pivotal step in its operational optimization strategy.

Crypto Compensation for Creditors

In a bid to provide compensation to its creditors, Celsius has devised a plan to distribute liquid cryptocurrency assets, including Bitcoin (BTC) and Ethereum (ETH), to eligible creditors. The estimated distribution value is approximately $2.03 billion, accounting for potential fluctuations in the value of BTC and ETH.

Factors Driving Closure Decision

The decision to close the Celsius app after the specified timeframe stems from various factors, primarily driven by the cost of maintaining an open platform for extended periods to facilitate withdrawals.

Third-Party Collaboration

To ensure a streamlined process, Celsius has chosen to collaborate with third-party distribution agents. PayPal is being considered as a potential agent for distributing funds to individual creditors in the United States. For other distributions, Celsius is actively exploring additional distribution agents.

Continued Platform Access

In cases where suitable distribution agents cannot be identified, Celsius commits to keeping its platform accessible for ninety days following the effective date. This provision is intended to facilitate targeted asset distribution to specific creditors.

Conclusion

Celsius’ decision to close its application and allocate substantial crypto assets to creditors represents a significant move towards optimizing its operations and addressing its financial challenges. This strategic realignment underscores the dynamic nature of the cryptocurrency industry and the ongoing efforts to ensure a secure and efficient ecosystem for all stakeholders involved.