Celsius to Allocate $127M to Creditors in Second Payout Phase
Bankrupt crypto platform Celsius will distribute $127 million to creditors in its second payout phase, covering approximately 60% of their claims.
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Bankrupt crypto platform Celsius will distribute $127 million to creditors in its second payout phase, covering approximately 60% of their claims.
The cryptocurrency lending platform Celsius, which filed for bankruptcy in 2022, has announced a $127 million distribution to creditors as part of the second phase of its bankruptcy proceedings.
According to a court document filed on Wednesday, creditors will receive payments in cash or liquid cryptocurrency equivalent to 60.4% of the value of their claims at the time of the bankruptcy filing.
Copy of the Court Order. Source: cases.stretto.com
The document notes that the weighted average value of Bitcoin used for calculations is $95,836.23. Creditors unable to receive cryptocurrency through an appointed agent will be compensated in cash.
In January 2024, Celsius completed its first payout phase, distributing $2 billion, which covered 57.65% of claims for 171,672 creditors. The company officially exited bankruptcy in November 2023, resolving a $1.2 billion shortfall in its balance sheet.
Related: Where Is Alex Mashinsky, Former CEO of Celsius?
Celsius continues to face legal challenges. In 2023, the company and its former CEO, Alex Mashinsky, were accused of fraud and misleading clients by regulators including the SEC, FTC, and CFTC. Mashinsky, who faces a potential 115-year prison sentence, recently had a request to dismiss two charges against him denied.
These payouts are part of Celsius's effort to restore trust and provide partial compensation for creditor losses.
Related: Celsius's Bankruptcy Saga Approaches its Final Chapter
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