We advised PayPal as distribution agent for the Celsius bankruptcy estate

Davis Polk advised PayPal, Inc. on its engagement to distribute certain assets of the Celsius estate to claimants in Celsius’ chapter 11 bankruptcy case. The engagement marks PayPal’s first appointment to distribute digital assets in a major crypto bankruptcy case.

On November 9, 2023, Celsius secured approval for its chapter 11 reorganization plan from the Southern District of New York Bankruptcy Court. As part of the plan’s confirmation, PayPal was approved as one of the distribution agents for the distribution of approximately $3 billion of digital assets. PayPal commenced distributions on February 1, 2024.

Headquartered in San Jose, California, PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy. Celsius was one of the first and largest digital asset borrowing and lending companies and filed for bankruptcy in July 2022.

The joint Davis Polk capital markets, financial institutions and restructuring team included partners Timothy Graulich, Joseph A. Hall and Gabriel D. Rosenberg, counsel Christopher Robertson and Erika D. White and associates Joseph W. Brown and Justin Levine. All members of the Davis Polk team are based in the New York office.