- Celsius Network distributes $127 million to eligible creditors as part of its bankruptcy proceedings.
- This distribution raises the total recovery rate to 60.4% of the eligible claims.
- The platform commenced distributing about $3 billion in crypto and fiat in January 2024.
Celsius Network has disbursed a second round of payments, totaling $127 million, to eligible creditors. This distribution, which follows the crypto lender’s collapse in July 2022, raises the overall creditor recovery rate to 60.4%. Celsius announced the payout details via an official post on X, specifying that creditors will receive payments in Bitcoin or USD based on their eligibility.
Celsius Network’s Collapse and Repayment Plan
Recall that in July 2022, Celsius Network filed for Chapter 11 bankruptcy protection, reporting a $1.2 billion deficit. The filing came just a month after the company froze customer accounts and halted withdrawals. In August 2023, the company presented a customer repayment plan, stating that customers would receive payments through PayPal.
Under the approved reorganization plan, the platform started repaying about $3 billion using crypto and fiat in January 2024. And in August, the platform distributed over $2.53 billion to roughly 251,000 creditors. This covered almost two-thirds of the eligible creditors and 93% of the eligible value.
Second Payout Details
The Celsius Network payout includes several creditor categories, including claims from retail depositors, general earn programs, and unsecured loans. Creditors who opted out of crypto payments or had issues during the first distribution will receive cash payouts in this round.
Read also: Celsius Receives BTC Worth $1.1B, Fueling Customer Repayment Rumor
A recent filing explained that eligible customers must complete AML/KYC checks for their Celsius Account and give more information to their assigned Distribution Agent. The network added, “Corporate creditors with Convenience Class Claims will not receive the Second Distribution.”
In related news, Celsius Network founder Alex Mashinsky, who faces fraud charges related to the platform’s collapse, has a pretrial conference scheduled for January 16, 2025. The jury trial is set to start on January 28. Mashinsky allegedly used customer funds to manipulate the price of Celsius Network’s CEL token.
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