Celsius Network is distributing a second tranche of $127 million to eligible creditors as part of the restructuring process that began after the sudden shutdown of services in July 2022. According to court documents, this new tranche brings the total recovery rate to 60.4% of the total amount owed to creditors, following the first tranche in which approximately 57.65% of claims were settled in digital assets or cash. This tranche consists primarily of digital assets, a large portion of which was converted to Bitcoin at an average price of $95,836.23, to facilitate the distribution process to creditors. It is worth noting that the first tranche was made in January 2024, when more than $2.53 billion was distributed to approximately 251,000 creditors.
The document states that if a qualifying corporate creditor does not complete and return a payment method selection form by November 4, 2024, or if the form is incomplete, their claim will be disbursed in cash. Corporate creditors whose claims fall under the specified category will not be able to receive the second payment.
Eligible creditors must complete the necessary identity verification procedures, including anti-money laundering procedures, and may be required to submit additional documents to the entity responsible for distributing the funds. To reduce administrative costs, the court decided not to convert the remaining cash into Ethereum. The cash of creditors who chose to receive cash payments, or who were unable to receive payments in cryptocurrency, will be held by the entity responsible for distributing the funds until the legal proceedings are completed. The payments include all categories of creditors, including individual depositors and corporate debt holders. The trial of the company’s former CEO, Alex Mashinsky, is scheduled for January 28, 2025.
