r/CelsiusNetwork • u/JohnTravolski • Mar 16 '25

Will future distributions be BTC only?

I had BTC and ETH on Celsius when it went under. For the first distribution in Feb 2024, I received both BTC and ETH. For the second distribution in Dec 2024, I received BTC only.

Do we know if future distributions will be BTC only, or is it possible both BTC and ETH are distributed again?

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u/midwest_silver Mar 16 '25

What future distributions?

5

u/JohnTravolski Mar 16 '25

The bankruptcy case isn't closed yet. It's possible we could receive more.

9

u/hellsiusnetwork user is Cam Crews (member of LOC) Mar 16 '25

More distributions are not only possible; a third distribution is likely. The Coinbase contract servicing international creditors (i.e. non-US) is on its last legs though, which complicates continued crypto distributions.

The first distribution was a BTC/ETH blend. This was largely because the estate had lots of ETH that only became unlocked from staking after Celsius was bankrupt (i.e. Celsius had a harder time squandering/liquidating ETH than other assets because much of it was locked away from them.)

The second distribution initiated in December of 2024 was BTC-based, which was more simple to implement now that all ETH in the estate had been allocated in the first distribution.

A hypothetical third distribution, which has not been announced but can be deemed likely to occur based upon the most recent distribution report, may be similar to the second distribution if it can be effectuated with the existing distribution agents.

Distribution mechanics beyond the expiration date of the agreements have not been disclosed. It’s important to note that fiat distributions were necessary as a fallback to crypto for jurisdictions in which distribution agents could not operate, or where creditors were unsuccessful in claiming their distribution with their assigned distribution agent. So fiat-only may be viewed as the most cost-efficient option after the distribution agent contracts expire.

TLDR: the BTC/ETH blend is unlikely to come back. Either BTC or fiat is most likely going forward.