Celsius Network’s second payout of $127 million increases creditor recoveries to 60.4%.
The court will begin the jury trial for former CEO Alex Mashinsky on January 28, 2025.
Celsius Network, the crypto lending platform that filed for bankruptcy in July 2022, plans to begin the second payout to eligible creditors. As the bankruptcy proceedings are ongoing, the court document discloses that the platform’s distribution is estimated at $127 million in liquid crypto assets. It brings total recoveries to 60.4% of eligible claims.
Notably, to ensure accuracy, the funds were converted to Bitcoin at an average price of $95,836 per token. This distribution follows the initial payout in January 2024. Around 57.65% of eligible claims were settled in either liquid crypto assets or cash.
The court document remarked:
“If an Eligible Corporate Creditor did not submit an Election Form by the November 4, 2024 deadline, or if it submitted an incomplete Election Form, such corporate creditor will receive a Cash distribution. Corporate creditors with Convenience Class Claims will not receive the Second Distribution.”
The second payout of Celsius primarily addresses various creditor groups, including retail deposit claims, which involve funds owed to individual depositors. It also covers the general revenue claims related to the platform’s revenue-sharing accounts. And the unsecured loan claims, which represent non-priority debts owed to creditors.
Moreover, the former Celsius Network CEO, Alex Mashinsky’s legal challenges persist. Earlier this month, Mashinsky’s appeal to dismiss two fraud charges tied to the collapse of Celsius was denied by the federal court.
Alex Mashinsky will face a jury trial starting on January 28, 2025. The court has scheduled a pre-trial for January 16, 2025. Besides, the allegations involve the market manipulation of the CEL token. The charges are proceeding under the Commodity Exchange Act and the Securities Exchange Act.
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