EddieJayonCrypto
29 Nov 24
Embattled crypto lending platform Celsius plans to distribute hundreds of millions of dollars worth of Bitcoin (BTC ) and cash to its creditors. The company, which filed for Chapter 11 bankruptcy, will distribute $127 million to eligible creditors in its second distribution. Each creditor will recei...
Embattled crypto lending platform Celsius Network has announced its second distribution of $127 million to eligible creditors, allowing them to receive the funds in Bitcoin (BTC) or USD. Each creditor is expected to receive approximately 60.4% of their claim in cash or liquid cryptocurrency. The company, which initially filed for Chapter 11 bankruptcy in 2022 with a reported $1.2 billion deficit, had previously made its first distribution in August, dispersing over $2.5 billion worth of cash and crypto to creditors.
In the new thread on the social media platform, Celsius Network stated, “Celsius will soon begin a second distribution of $127 million made available from the Litigation Recovery Account to eligible creditors (Classes 2, 5, 7, 8, and 9). Distributions will be made in BTC or USD, based on eligibility.” The recent court filing outlined 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. The post-effective date debtors will determine the amount of BTC to be distributed to eligible creditors based on a BTC price of $95,836.23.
This announcement comes after Celsius filed for bankruptcy due to freezing customer withdrawals from a lack of funds and citing “extreme market conditions” as contributing factors to its downfall. With the recent news of the second distribution, Celsius continues to navigate its financial restructuring and fulfill its commitments to creditors.