Breaking: Celsius Network Taps Hyperwallet For Fund Distribution

Bankrupt digital currency lending platform, Celsius Network has filed a notice with the court regarding its creditor fund distribution plans. The firm’s lawyers in a filing shared with the United States Bankruptcy Court for the Southern District of New York plans to leverage PayPal’s Hyperwallet services to repay creditors.

Celsius Network and the Creditor Focus

Per the details contained in the filing, the bankrupt firm said its chose the Hyperwallet because of the difficulty some creditors might face via wire transfers. This includes difficulties based on inaccurate or incomplete wire instructions from creditors. As a PayPal subsidiary, the protocol can also help streamline the movement of funds from crypto to cash and vice versa.

Noteworthy, the Hyperwallet distribution services include a self-service portal where the creditors can choose their preferred method of payment. The available options depends on the creditor’s jurisdiction. At the moment, the cash distribution to creditors via this PayPal solution is expected to span across 117 jurisdictions including Albania, Algeria, Bahamas, Bahrain, Costa Rica, Croatia, Egypt, El Salvador, and India among others.

By making this move, Celsius Network is trying to avoid all complexities and delays that would hamper its repayment plan. Its creditors have had to wait for about two years for the crypto firm to refund their assets.

The Dire Measures to Recoup Funds

Following its implosion, the bankrupt firm has made a number of efforts to recoup funds to repay its creditors. Recently, the firm sued Tether for $2.4 billion over some Bitcoin transactions prior to its downfall. The crypto lending service provider accused the USDT issuer of conducting “fraudulent” and “preferential” transfers of Bitcoin that amounted to over $3.5 billion in today’s crypto market.

Unfortunately, Tether CEO Paolo Ardoino refuted the claims, tagging them as “baseless” while he added that the firm will willingly seek a court redress. As part of Celsius Network’s push to claw back funds for repayment, it even filed a lawsuit against its creditors in the United States Bankruptcy Court for the Southern District of New York.

Those in this group allegedly withdrew a massive portion of their funds just before the crypto firm imploded in 2022. According to the lawsuit, this creditors, including investment funds and companies, allegedly received “preferential transfers.”