- Celsius recently addressed rewards, rewards and promotions for customers.
- The bankrupt cryptocurrency lender stated that customers had no control over these rewards paid out between the date of the pause and the date of the bankruptcy filing.
- Celsius also mentioned that they have updated all data based on data validations.
Bankrupt cryptocurrency lender Celsius recently stated in a tweet that it will reissue and mail 1099-MISC forms to some clients in the coming days.
Celsius will reissue and mail 1099-MISC forms to some customers in the coming days.
— Celsius (@CelsiusNetwork) March 16, 2023
Celsius stated in a tweet that it was reconsidering its reporting obligations for tax compliance. It determined that customers had no control over bonuses, promotions, and rewards that were paid out between the date of the pause and the date of filing for Chapter 11 bankruptcy.
As a result of this decision, Celsius has updated all relevant data by validating the data and adjusting the dates used in the initial calculation of the 2022 bonus payments from July 14, 2022, to June 12, 2022.
Celsius noted that due to these revisions, bonus payments to clients may deviate from the number shown on 1099-MISC forms released in January 2023. The cryptocurrency lender also stressed that the forms will not be marked as “corrected.” The reason cited is that it has not It sends these values to the IRS.
Regarding the threshold, Celsius stated in a tweet:
Only updated and correct values for those amounts that meet the $600 minimum set by the IRS will be sent.
In response to “extreme market conditions,” Celsius suspended withdrawals, swaps, and transfers, which fueled speculation of a massive bankruptcy of the platform. The crash was a follow-up to the May crash of Do Kwon and the LUNA ecosystem.
In an effort to address growing liquidity concerns, the company revealed on July 3, 2022, that it would terminate 23% of its workforce. However, on July 13, 2022, Celsius Network finally resorted to filing for bankruptcy.
The update appeared after the release of the percentage of rewards update and rewards for some customers first in the coin version.