Bankrupt Crypto Lender Announces Plan To Distribute $127,000,000 in Bitcoin or US Dollars to Creditors

Embattled crypto lending platform Celsius is announcing a plan to distribute hundreds of millions of dollars worth of Bitcoin (BTC) and cash to its creditors.

In a new thread on the social media platform X, crypto firm Celsius Network – which filed for Chapter 11 bankruptcy earlier this year – says it will hand out $127 million to eligible creditors, marking its second distribution.

“Celsius will soon begin a second distribution of $127 million made available from the Litigation Recovery Account to eligible creditors (Classes 2, 5, 7, 8, and 9). Distributions will be made in BTC or USD, based on eligibility.”

A recent court filing noted that each creditor will receive cash crypto equal to about 60.4% of their claim against Celsius.

“Each eligible creditor will receive a cumulative distribution in cash or liquid cryptocurrency equal to approximately 60.4% of the value of such creditor’s claims as of the petition date. The post-effective date debtors will determine the amount of BTC to be distributed to eligible creditors on account of their allowed claims based on a BTC price of $95,836.23.”

Celsius initially filed for bankruptcy in 2022 after it was forced to freeze customer withdrawals due to a lack of funds. At the time, the firm reported a staggering $1.2 billion deficit and cited “extreme market conditions” for its downfall.

In August, Celsius made its first distribution, giving out over $2.5 billion worth of cash and crypto to creditors.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/CaptainMCity

The post Bankrupt Crypto Lender Announces Plan To Distribute $127,000,000 in Bitcoin or US Dollars to Creditors appeared first on The Daily Hodl.