According to court documents from November 27, the cryptocurrency lending platform Celsius is about to initiate the second round of compensation, repaying $127 million to creditors in the near term.
This repayment will be made in Bitcoin (BTC) or US dollars, covering five categories of creditors, including retail loan deposits, Earn account general claims, Withhold account claims, unsecured loan claims, and other general unsecured claims.
According to the creditor value calculation on the day of Celsius's bankruptcy filing, each eligible creditor will receive 60.4% of the repayment amount.
Since formally exiting bankruptcy in January this year, Celsius has begun repaying over $3 billion in cryptocurrencies and fiat currency to creditors; in February, the company shut down its mobile app and website and began distributing funds, with some creditors also receiving shares in Ionic Digital—a new company established after Celsius restructured its cryptocurrency mining business.
This compensation is another significant development following the first round of repayments in August. In August, Celsius distributed over $2.53 billion to more than 251,000 creditors, at which time it had repaid about two-thirds of creditors and approximately 93% of the payable amount.
Celsius's financial storm can be traced back to July 13, 2022, when it filed for bankruptcy protection due to business collapse; former CEO Alex Mashinsky subsequently resigned in September of the same year and was arrested this year, facing multiple fraud charges. His criminal case is expected to be heard in the U.S. in January 2025.
Moreover, Celsius's former revenue head Roni Cohen-Pavon also admitted last year to involvement in market manipulation and fraudulent activities, and is expected to be sentenced next month.
In addition, Celsius paid $4.7 billion to the U.S. government as a settlement during the bankruptcy process to resolve allegations of fraud.
"Celsius will initiate the second round of repayments, distributing $127 million to creditors" this article was first published in (Blockke).
