Celsius Begins Second Distribution to Eligible Creditors: Details
Celsius has begun distributing $127 million to eligible creditors as part of the second tranche under the bankruptcy proceedings, which followed the company’s collapse in July 2022.
This distribution brings the total recovery rate to 60.4% of eligible claims, compared to the first tranche in January 2024, which covered 57.65% of claims.
The second distribution consisted mostly of cryptocurrencies, with the funds converted to Bitcoin at an average rate of $95,836 per Bitcoin to match the claims values.
The tranche covered multiple categories of creditors, including retail deposit claims, general dividend claims, and unsecured loan claims.
Cash distributions were also made to creditors who chose not to receive cryptocurrencies or encountered problems in the first round.
Celsius’ bankruptcy was a turning point for the crypto lending industry, as it had accumulated billions of dollars in debt to its creditors.
The first payment in January 2024 represented a crucial step toward meeting its financial obligations.
In related news, the company’s former CEO, Alex Mashinsky, is expected to appear before a jury on January 28, 2025, following a pre-trial conference scheduled for January 16, 2025.
