PLAN ADMINISTRATOR’S SECOND STATUS REPORT ON DISTRIBUTIONS

See https://cases.stretto.com/public/x191/11749/PLEADINGS/1174912112480000000020.pdf

This report is 47 pages long, and it covers a lot of distribution-related updates in the reporting period from August 23, 2024, through October 31, 2024.

Some highlights:

Approximately 100,000 eligible creditors, which have an average distribution of approximately $1,200 in Liquid Cryptocurrency or Cash at January 16, 2024 prices, have yet to successfully claim their distribution. As noted herein, approximately 57,000 of these remaining creditors have a distribution of less than $100, and approximately 33,000 more have a distribution of between $100 and $1,000. As previously explained in the Plan Administrator’s First Report, it is important to note that the Plan Administrator does not expect that all creditors will claim a distribution—given that creditors need to take action to claim a distribution, there will certainly be some amount of creditors who never take any action, and those amounts will ultimately be redistributed to other creditors as contemplated by the Plan. The Post-Effective Date Debtors plan to file a motion to implement the provisions of the Plan regarding Unclaimed Distributions to be heard at the omnibus hearing on January 14, 2025. For the avoidance of doubt, the Post-Effective Date Debtors do not intend to treat as Unclaimed Distributions those distributions that creditors are actively working with the Post-Effective Date Debtors to receive.

The Plan Administrator remains committed to facilitating distributions in Liquid Cryptocurrency to as many creditors as possible. However, as demonstrated by the expiration of the Coinbase Agreement, the reality is that Liquid Cryptocurrency distributions may not always be possible. Currently, the Plan Administrator intends to continue attempting Liquid Cryptocurrency distributions through PayPal and Coinbase, as applicable, through approximately November 2025. Thereafter, the Plan Administrator intends to make all distributions in Cash.

the Plan Administrator has exceeded the initial Wind-Down Budget by approximately $14 million (as of October 2024). Over the next year, the Plan Administrator expects that costs will continue to exceed the initial Wind-Down Budget. The Plan Administrator will continue to explore options to minimize ongoing costs with the expectation of bringing ongoing costs in-line with the initial Wind-Down Budget beginning in 2026.

Celsius still has a headcount of 68 employees and contractors as of Oct. 31, but expects to reduce this number to 50 by the end of the year.

Apparently, it takes a lot of time and money to deal with 134,000 support tickets and >500 letters to the judge.

Most importantly, as shown in the chart on page 42, Celsius still has $1.2 billion in assets, even after making distributions of over $2.6 billion in value of Liquid Cryptocurrency and Cash (at prices set as of January 16, 2024). Of this $1.2 billion, $606 million is the remaining amount owed in the initial distribution (some of which may never be claimed), while $608 million are net assets, which will be fully distributed to creditors once the initial planned distribution is complete.

All these numbers are as of October 31. So I think we have to subtract from net assets the $127 million that was used to make the second distribution this week. Still, there is a lot more value to be distributed eventually.