According to The Block, Celsius allocated $127 million to eligible creditors in its bankruptcy proceedings, marking its second payment.
According to court documents filed on Wednesday, Celsius will distribute approximately 60.4% of the claim value for creditor application dates in cash or cryptocurrency. The document states: 'Due to the second distribution, the total amount of cash or liquid cryptocurrency each eligible creditor will receive is approximately 60.4% of their claim value.' The value of Bitcoin used for payment is set at a weighted average distribution price of $95,836.23.
The supplementary document states that eligible creditors who cannot receive liquid cryptocurrency through the designated distribution agent will be directed to receive payments in cash.
In January this year, Celsius' bankruptcy plan administrator initiated the first distribution, distributing $2 billion worth of cryptocurrency to 171,672 creditors, with a recovery rate of 57.65%.
Celsius filed for bankruptcy in 2022 due to a $1.2 billion hole found in its balance sheet. The company emerged from bankruptcy in November.
Last year, Celsius and its former CEO Alex Mashinsky were sued by the SEC, FTC, and CFTC, accused of misleading customers. Mashinsky was also charged with fraud and faces up to 115 years in prison.
Earlier this month, a U.S. district judge denied Mashinsky's request to dismiss two fraud charges.
