Creditor Claim and Distribution Calculation Overview

Please review the information below regarding the calculation of scheduled claim and distributions. The treatment of claims under the confirmed Chapter 11 plan was determined by specific factors, including account types, claim classifications, elections made on the ballot, and applicable Court-approved settlements. The details provided below are for informational purposes only.

Claim Value

To view scheduled creditor claims, refer to the Unsecured Retail Customer Claims filing. The index starts on page 116 and is sorted by the first letter of the creditor's first name. Claim details were also sent by email in November 2022 from no-reply@cases-cr.stretto-services.com with the subject line “Celsius Network LLC Notice of Claims Deadline.”

Other than scheduled claims denominated in CEL, scheduled claims were valued using the Cryptocurrency Conversion Table. Please note that CEL was set to $0.25 USD per CEL token [Docket No. 4216]. If a creditor’s claim was subsequently modified (e.g. via a settlement), then the amount used for distributions may differ.

Distribution calculations vary by where each asset was held (e.g. Custody, Earn, Borrow). Refer to the Plan [Docket No. 4289], the Disclosure Statement [Docket No. 3332], and the Notice of Effective Date [Docket No. 4298] for more on distributions and estimated recoveries, including an illustrative recovery for an Earn creditor.

Custody Account assets were made available for withdrawal per the Celsius’ Notice Regarding Commencement of Distribution of Cryptocurrency to Holders of Custody Claims. As such, those assets would not be included in the calculation of scheduled claims.

Treatment of Claims by Class

For creditors who used more than one Celsius product (for example, holding cryptocurrency in Earn while also having a Celsius loan), balances were divided into separate claim classes. Each claim class was calculated independently according to its own Court-approved rules (such as applying loan set-offs to Borrow claims).  The below is not an exhaustive list of claim classes. For full details, please refer to the Plan of Reorganization [Docket No. 4289] starting on page 37:

• Convenience Class (Class 4): Total claim value of $5,000 or less (or claims reduced to $5,000 via election), not including any Custody claims. These received a single distribution and were not eligible for equity shares in MiningCo (Ionic Digital).
• Earn Class (Class 5): Earn claim valued over $5,000. These claims received a hybrid recovery consisting of liquid cryptocurrency (BTC/ETH), equity shares in MiningCo, and rights to future illiquid asset distributions.

Distributions

While the Petition Date USD value determines the value of a scheduled claim, the applicable distribution round pricing below determines the amount of liquid cryptocurrency, USD, and/or MiningCo shares received for each claim distribution. 

• Initial Distribution: BTC $42,972.9948; ETH $2,577.4752; MiningCo shares $20/share
• Distribution 2: BTC $95,836.23
• Distribution 3: BTC $118,019.7455
• Distribution 4: BTC $88,603.09

The specific asset types and distribution amounts a creditor receives depends on the claim class and the distribution partners available. As a reminder, not all creditors are eligible to receive liquid cryptocurrency, and therefore some are assigned a USD distribution partner.

Creditors assigned to more than one claim class may have distributions combined into a single transaction amount, even though each underlying claim was calculated separately. Creditors eligible for future distributions will be notified via email before any such distribution takes place. Information will also be publicly announced on the Stretto court docket.

Court Document References

For full legal details, reference the following filings on the Stretto court docket:

• Plan of Reorganization — Docket No. 4289: Explains the classification, treatment, and distribution mechanics for all creditor classes.
• Notice of Filing of Cryptocurrency Conversion Rates — Docket No. 1420: Establishes the cryptocurrency prices as of the Petition Date.
• CEL Token Valuation — Docket No. 4216: CEL tokens set to $0.25 USD.
• Disclosure Statement — Docket No. 3332: Provides additional information about the Plan and estimated recoveries.
• Notice of Effective Date — Docket No. 4298: Outlines distribution execution and illustrates an example of an Earn creditor recovery in Appendix A.
• Corporate Supplemental Distribution Settlement — Docket No. 7726: Approves a supplemental distribution to eligible corporate creditors.

Additional Information

• Transaction reports are no longer provided for former Celsius app accounts. On February 29, 2024, the Celsius app was permanently closed as a part of the company’s wind-down, in accordance with the Plan of Reorganization.
• Tax statements are not issued. Please consult a tax professional for any tax-related inquiries.
• Claim distribution confirmations are sent by email for each successful redemption.
• Ionic Digital shares are distributed by Odyssey Trust. Ionic Digital Shareholders Portal
• Official communications will only come from approved addresses and domains. View the full list here: Phishing & Approved Domains.