Celsius Releases Update on Rewards And Bonuses For Certain Customers

Bankrupt cryptocurrency lender Celsius recently stated in a tweet that it will be reissuing and mailing 1099-MISC forms for certain customers in the coming days.

Celsius will be reissuing and mailing 1099-MISC forms for certain customers in the coming days.

— Celsius (@CelsiusNetwork) March 16, 2023

Celsius mentioned in the tweet that it was revisiting its tax compliance reporting obligations. It determined that customers didn’t have control over rewards, promotions, and bonuses that were paid between the pause date and the Chapter 11 bankruptcy filing date.

As a result of this determination, Celsius updated all pertinent data through data validations and adjusted the dates utilized in the initial calculation of reward payments for 2022 from July 14, 2022, to June 12, 2022.

Celsius has indicated that due to these revisions, the rewards payments for customers may deviate from the figure shown on the 1099-MISC forms that were issued in January 2023. The crypto lender also stressed that the forms won’t be marked as “corrected.” The reason cited was that it hadn’t submitted these values to the IRS.

Regarding the threshold, Celsius stated in the tweet:

Only the updated and correct values for those amounts that meet the $600 threshold set by the IRS will be submitted.

In response to “extreme market conditions,” Celsius suspended withdrawals, swaps, and transfers, prompting speculations of the platform’s significant insolvency. The downfall was a follow-up to the collapse of Do Kwon‘s Terra and the LUNA ecosystem in May.

In an effort to address mounting liquidity concerns, the company disclosed on July 3, 2022, that it would be terminating 23% of its workforce. However, on July 13, 2022, Celsius Network ultimately resorted to filing for bankruptcy.

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