Celsius initiates second payout of $127 million, enhancing creditor returns to 60.4%
Bankrupt crypto lender Celsius has announced the second round of payments to creditors.
According to a Nov. 27 court filing, this phase involves the distribution of $127 million in assets that will cover 2.75% of total creditor claims.
The 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 firm stated:
“As a result of the Second Distribution, each Eligible Creditor will receive a cumulative distribution in Cash or Liquid Cryptocurrency equal to approximately 60.4% of the value of such creditor’s Claims as of the Petition Date.”
Distribution details
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. It stated:
“As per the Coinbase Agreement, after Nov 9, 2024, non-corporate creditors who still have not received their Celsius distribution via Coinbase will automatically be rerouted to a US dollar (USD) distribution partner instead.”
Meanwhile, 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 arrives as former Celsius CEO Alex Mashinsky is scheduled to face trial on Jan. 28, 2025, with a pre-trial hearing set for Jan. 16. Notably, a federal court recently denied his request to dismiss fraud charges related to the company’s collapse.
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Celsius initiates second payout of $127 million, enhancing creditor returns to 60.4%
Bankrupt crypto lender Celsius has announced the second round of payments to creditors.
According to a Nov. 27 court filing, this phase involves the distribution of $127 million in assets that will cover 2.75% of total creditor claims.
The 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 firm stated:
“As a result of the Second Distribution, each Eligible Creditor will receive a cumulative distribution in Cash or Liquid Cryptocurrency equal to approximately 60.4% of the value of such creditor’s Claims as of the Petition Date.”
Distribution details
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. It stated:
“As per the Coinbase Agreement, after Nov 9, 2024, non-corporate creditors who still have not received their Celsius distribution via Coinbase will automatically be rerouted to a US dollar (USD) distribution partner instead.”
Meanwhile, 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 arrives as former Celsius CEO Alex Mashinsky is scheduled to face trial on Jan. 28, 2025, with a pre-trial hearing set for Jan. 16. Notably, a federal court recently denied his request to dismiss fraud charges related to the company’s collapse.
The post Celsius initiates second payout of $127 million, enhancing creditor returns to 60.4% appeared first on CryptoSlate.
Read More