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News

Celsius Second Distribution Underway to Eligible Creditors for $127M

November 28, 2024 - Around 2 mins mins to read

Key Points:

  • Celsius Network has distributed $127 million in its second bankruptcy payout, raising the recovery rate for eligible creditors to 60.4%.
  • The Celsius second distribution, part of a $3 billion reorganization plan, includes cash, crypto, and shares in Mining NewCo, a Bitcoin mining and staking entity.
Bankrupt crypto lender Celsius Network has begun the second wave of disbursements, with about $127 million being given out to eligible creditors, a recent court filing has shown.
Celsius Second Distribution Underway to Eligible Creditors for $127M

Read more: Celsius Bankruptcy Administrator Requires Creditors Withdrawal To Repay 27.5% Of Assets

Celsius Second Distribution Will Repay $127 Million to Creditors

The move comes after the platform went down in July 2022, one of the most high-profile bankruptcies in the crypto lending market.

The Celsius second distribution takes the total recovery rate to 60.4% of eligible claims, from the initial payout in January 2024, when 57.65% of claims were paid. The first distribution, worth more than $2.53 billion, went to about 251,000 creditors.

Mainly comprising liquid crypto assets, the Celsius second distribution is pegged to Bitcoin, converted at an average price of $95,836.23 per BTC to match claim values.

Distributions encompass not only retail deposits but general earnings and claims on unsecured loans alike. Others have obtained cash due to certain logistical glitches or because the creditors opted out in the original round.

Reorganization Plan in Celsius Aims at $3 Billion Distribution

To receive funds, eligible creditors must undergo anti-money laundering and Know Your Customer procedures through their Celsius accounts. More information may be requested by the appointed distribution agent.

The reorganization plan would feature the distribution of almost $3 billion in cash, crypto, and shares of Mining NewCo, the company which handles Bitcoin mining and staking and was green-lighted by the bankruptcy court, as well as by the U.S. Securities and Exchange Commission, during this year. Besides, the former CEO of the company, Alex Mashinsky, is scheduled to go to trial on January 28, 2025.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Alex Mashinsky

Bitcoin

Celsius Network

Celsius Second Distribution

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.