Celsius Kicks Off Second Round of Payouts to Creditors Amid Ongoing Legal Troubles
Celsius, the now-bankrupt crypto lender, has initiated the second round of asset distributions to its creditors, according to a recent court filing dated November 27.
This phase will see $127 million in assets allocated, covering just 2.75% of the total claims from creditors.
This payout follows an initial distribution made in August, where the company returned $2.53 billion to approximately 251,000 creditors, representing 57.65% of their claims. With this new round, the total payout to creditors reaches around 60.4% of the eligible claims. The company confirmed that each creditor will receive a combination of cash or cryptocurrency, with a total value equivalent to 60.4% of their claims as of the petition date.
For the second distribution, creditors will have their payments processed in either Bitcoin or US dollars, depending on their previous payment method. Those who received cryptocurrency in the initial round will continue to receive Bitcoin, while others will be compensated in cash. Celsius has also stated that Bitcoin payouts will be based on the market value of the asset at the time. If Bitcoin’s price falls below $95,836, creditors could see a reduction in their payout percentage. In contrast, a higher Bitcoin price could increase the amount they receive.
READ MORE: Cryptocurrency Exchange Suspends Withdrawals After Major Security Breach
Furthermore, Celsius has implemented a system where creditors must link their accounts to Coinbase if they wish to receive cryptocurrency payments. Those who are unable to accept crypto will have their Bitcoin converted to US dollars at the current market rate and will receive the proceeds via various methods, including wire transfers, PayPal, or Venmo.
This announcement comes ahead of the trial of former Celsius CEO Alex Mashinsky, scheduled for January 28, 2025, after his request to dismiss fraud charges linked to the company’s collapse was denied by a federal court.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
