Celsius, a failed crypto lender, has announced the second round of payments to its creditors. This phase involves distributing $127 million in assets, which covers 2.75% of total creditor claims. This payout 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 reaches 60.4% of eligible claims. The company stated that each eligible creditor will receive a cumulative distribution in cash or liquid cryptocurrency equal 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 whenever possible to streamline the process. The company specified that creditors wishing to receive Bitcoin must have a verified Coinbase account linked to their Celsius records.
The 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 Jan.
28, 2025, with a pre-trial hearing set for Jan. 16. A federal court recently denied his request to dismiss fraud charges related to the company’s collapse.
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