Distribution Calculation, Partners, Reporting, and Other Questions

TABLE OF CONTENTS

• What is the percentage of my Claim amount that I will receive as a distribution?
• Why am I receiving less than what was previously in my Celsius account?
• I received my crypto distribution, but I’ve only received BTC/ETH. Why didn’t I receive the same coins I had in my Celsius account?
• What type of documentation will be provided for accounting and tax purposes? 
• How can I get a copy of my Celsius account transaction history?
• I am a creditor with a corporate account, how will I receive my distribution?
• Will I still receive a distribution if I did not vote for the Plan?
• I am a Borrower and have questions regarding my Celsius loan. What should I do?
• According to the Plan, I should be receiving the proceeds from the monetization of Illiquid Assets and Litigation Proceeds. How will that process work?
• If I do not resolve my outstanding Withdrawal Preference Exposure by participating in the Account Holder Avoidance Action Settlement, will I receive a distribution?
• How will my Withdrawal Preference Exposure be resolved if I do not participate in the Account Holder Avoidance Action Settlement?
• I have multiple claims. Will I be receiving my claim distributions together or separately?

What is the percentage of my Claim amount that I will receive as a distribution?

Please refer to the Plan [Docket №4289], the Disclosure Statement [Docket №3332], and the Notice of Effective Date [Docket №4298] for information about the composition of distributions and estimated recoveries. The Notice of Effective Date includes an illustrative recovery for an Earn creditor (see Appendix A). 

As indicated in the Disclosure Statement, recovery percentages depend on many factors, including the value of BTC and ETH and the implementation of the MiningCo Transaction. As a reminder, creditors hold different Claims (or combinations of Claims) against the Debtors, and may have been eligible for different elections and settlements during the voting on the Plan. Accordingly, creditor recoveries are highly individualized and dependent on a variety of factors.

Why am I receiving less than what was previously in my Celsius account?

The Celsius app was shut down on February 29, 2024, and the balance information previously displayed in the app was not reflective of the value used to calculate your claim. Celsius filed for bankruptcy on July 13, 2022, and the value of your claim was calculated in US dollars based on the assets showing in your Celsius account on the bankruptcy filing date.

Please refer to the Plan [Docket №4289], the Disclosure Statement [Docket №3332], and the Notice of Effective Date [Docket №4298] for information about the composition of distributions and estimated recoveries. The Notice of Effective Date includes an illustrative recovery for an Earn creditor (see Appendix A). 

I received my crypto distribution, but I’ve only received BTC/ETH. Why didn’t I receive the same coins I had in my Celsius account?

Cryptocurrency distributions are only being made in Bitcoin (BTC) and Ethereum (ETH), as outlined in the court-approved Plan [Docket №4289]. 

What type of documentation will be provided for accounting and tax purposes? 

Celsius will not be providing any documentation to creditors for accounting and tax purposes.  

How can I get a copy of my Celsius account transaction history?

To request a copy of your Celsius account transaction history, please initiate a support inquiry.

I am a creditor with a corporate account, how will I receive my distribution?

A limited number of corporate accounts will receive their distribution in cryptocurrency through Coinbase and they will be directly notified by Celsius. All other corporate creditors will receive their distribution in US dollars.

Will I still receive a distribution if I did not vote for the Plan?

Yes. Generally, creditors who did not vote for the Plan will receive a claim distribution. However, several factors may affect the timing of your distribution, including, but not limited to, whether you opted out of the Class Claim Settlement, whether you have outstanding Withdrawal Preference Exposure at the time of distributions, and other factors.

I am a Borrower and have questions regarding my Celsius loan. What should I do?

If you are a Borrower, refer to the Notice to Holders of Retail Borrower Deposit Claims [Docket №4206] regarding Plan treatment associated with your claim. Please note that the deadline to notify the Debtors of your intent to refinance or repay your Retail Advance Obligations has passed. If you did not notify the Debtors of your intent to refinance or repay your Retail Advance Obligations, you will receive the Set Off Treatment on account of your Retail Borrower Deposit Claim. If you have additional questions regarding the repayment or refinancing of your loan, please initiate a support inquiry.

According to the Plan, I should be receiving the proceeds from the monetization of Illiquid Assets and Litigation Proceeds. How will that process work?

These distributions will be made periodically following the Effective Date and will be handled by the Plan Administrator. The process for receiving these proceeds will be announced prior to the first such distribution.

If I do not resolve my outstanding Withdrawal Preference Exposure by participating in the Account Holder Avoidance Action Settlement, will I receive a distribution?

Creditors have the option to resolve any outstanding Withdrawal Preference Exposure above $100,000 by making a settlement payment before distributions begin. Information about the process for making settlement payments and participating in the Account Holder Avoidance Action Settlement has been communicated to affected creditors. Celsius will not be required to make any distribution to a creditor with Withdrawal Preference Exposure until that exposure is resolved. The Litigation Administrator will address any outstanding Withdrawal Preference Exposure through separate correspondence or other action, as discussed in greater detail in the next question. 

If your Withdrawal Preference Exposure is $100,000 or less, you do not have to do anything. Under the Account Holder Avoidance Action Settlement, if your Withdrawal Preference Exposure is $100,000 or less, you voted to accept the Plan, and you did not opt out of the releases under the Plan, you will receive a release of potential Avoidance Actions. If your Withdrawal Preference Exposure is $100,000 or less, you abstained from voting, and you did not opt out of the releases under the Plan, you will not receive a release of potential Avoidance Actions, but you will not have your distribution withheld on account of unresolved Withdrawal Preference Exposure. For more information, please see the Notice to Account Holders Regarding Forthcoming Communications About Settlement of Withdrawal Preference Exposure to the Account Holder Avoidance Action Settlement [Docket №4207]. 

How will my Withdrawal Preference Exposure be resolved if I do not participate in the Account Holder Avoidance Action Settlement?

The Litigation Administrator will oversee the resolution and settlement of Withdrawal Preference Exposure as well as other claims. The Litigation Administrator will be able to enter into settlements that it believes are appropriate, which may include setting off a creditors’ distribution against any agreed upon settlement amount. 

If you are unable to resolve with the Litigation Administrator, the Litigation Administrator may initiate Alternative Dispute Resolution (ADR) by providing you with notice as outlined in the Third Notice of Filing of Plan Supplement [Docket №3444] on pages 111–130. 

The Litigation Administrator may be contacted at: celsiuslitigationadmin@m3-partners.com. Please keep in mind that the Litigation Administrator is expecting to receive a significant number of inquiries and the Litigation Administrator will respond as soon as reasonably practicable. 

As a reminder, your Withdrawal Preference Exposure was calculated using the formula available in the Disclosure Statement [Docket №3332], beginning on page 76.

I have multiple claims. Will I be receiving my claim distributions together or separately?

If you hold multiple claims in your name, you will receive your claim distributions together. For example, if you are a creditor with a General Earn Claim, a Withhold Claim, and a Retail Borrower Post-Set Off Claim, you will receive your claim distributions collectively in the form of cryptocurrency or US dollars. If you are a creditor with claims from both a retail account and a corporate account, the claim distribution for your corporate account will be processed separately.