The bankrupt crypto lender Celsius has announced its second round of payments to creditors. This involves the distribution of $127 million in assets, covering 2.75% of total creditor claims. This follows an earlier round in August, which returned $2.53 billion to 251,000 creditors, representing 57.65% of claims.
With this new distribution, the total payout now reaches 60.4% of eligible claims. Celsius stated that each eligible creditor will receive a cumulative distribution in cash or liquid cryptocurrency equivalent to approximately 60.4% of the value of their claims as of the petition date. According to the court filing, creditors will receive their payments in Bitcoin or US dollar cash based on their eligibility.
Those who previously received crypto payments will continue to accept Bitcoin, while cash recipients will be paid similarly. Celsius plans to use the same distribution agents as before to streamline the process. The company specified that creditors wishing to receive Bitcoin must have a verified Coinbase account linked to their Celsius records.
Bitcoin payouts will depend on its market value. If the price falls below $95,836, creditors may receive less than 2.75% of their claims, while a higher price will result in increased payouts. A Celsius-focused account on X explained that creditors unable to accept crypto will have their Bitcoin equivalent sold at market rates, with proceeds delivered as US Dollars through various payment methods, including wire transfers, PayPal, and Venmo.
This development comes as former Celsius CEO Alex Mashinsky is scheduled to face trial on January 28, 2025, with a pre-trial hearing set for January 16. A federal court recently denied his request to dismiss fraud charges related to the company’s collapse.
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