Celsius begins second distribution of $127 million to eligible creditors
Key Takeaways
- Celsius Network’s second distribution of $127 million raises recovery rate to 60.4% for creditors.
- Creditors will receive Bitcoin valued at $95,836.23, the weighted average price for this distribution.
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Celsius Network is distributing $127 million to eligible creditors in its second payout under bankruptcy proceedings, following the crypto lender’s collapse in July 2022, according to court filings.
The latest distribution raises the total recovery rate to 60.4% of eligible claims, building on January 2024’s initial payout that delivered approximately 57.65% of eligible claims in liquid crypto assets or cash.
The second distribution consists primarily of liquid crypto assets, with funds converted to Bitcoin at an average price of $95,836.23 per BTC to match claim values.
The payout covers various creditor classes, including retail deposit claims, general earn claims, and unsecured loan claims.
Cash distributions are being made to creditors who opted out of crypto payments or encountered logistical issues during the first round.
Celsius’s bankruptcy in July 2022 was a significant event in the crypto lending industry, as the company owed billions to its creditors.
The initial distribution in January 2024 marked a crucial step in the company’s efforts to rectify its financial obligations.
Former Celsius Network CEO Alex Mashinsky is scheduled to face a jury trial beginning on January 28, 2025, following a pretrial conference set for January 16, 2025.
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Author: Estefano Gomez
