According to CoinDesk, Celsius is set to commence a second distribution of funds to its creditors, as detailed in a court filing dated November 27. The distribution will total $127 million, provided in either bitcoin (BTC) or USD, and will be allocated across five creditor classes. These classes include retail borrower deposit claims, general earn claims, withhold claims, unsecured loan claims, and general unsecured claims. Each eligible creditor is expected to receive 60.4% of the value of their claim as of the Petition Date.
This development follows Celsius's emergence from Chapter 11 bankruptcy in January of this year. Subsequently, the company ceased operations of its mobile and web applications on February 29 and initiated the process of reimbursing creditors. In addition to monetary compensation, some creditors received shares in Ionic Digital, a company established from Celsius’s reorganized mining business. The upcoming distribution is a continuation of the company's efforts to settle its obligations, following a significant payout in August. During that period, Celsius distributed over $2.53 billion to more than 251,000 creditors, covering approximately two-thirds of all eligible creditors and about 93% of the eligible value.
Celsius initially filed for Chapter 11 bankruptcy relief on July 13, 2022, after the collapse of its business. The company's former CEO, Alex Mashinsky, resigned in September 2022 and was subsequently arrested on fraud charges. His trial is scheduled to take place in the U.S. in January 2025. Additionally, Roni Cohen-Pavon, the former Chief Revenue Officer at Celsius, pled guilty to charges of market manipulation and fraud last year, with sentencing expected next month. The bankruptcy process also involved a $4.7 billion settlement with U.S. authorities over fraud allegations, marking a significant step in the company's reorganization efforts.
