Celsius to Distribute $127 Million to Creditors in Second Payout

The bankruptcy administrator for the lending platform Celsius will distribute assets worth $127 million among eligible creditors as part of the second payout. This is according to a court filing.

According to the document, investors will receive compensation in Bitcoin based on cryptocurrency exchange rates as of January 16. For the purpose of determining the payout amounts, the price of Bitcoin has been set at $95,836.23.

Creditors unable to provide a designated agent to receive the first cryptocurrency will receive their payments in fiat currency.

It is anticipated that following the completion of the second distribution, compensation for Celsius clients’ claims will reach 60.4% of their demands.

In January, the administrator made the first payout in the bankruptcy procedure amounting to $2.53 billion. This allowed for the satisfaction of 57.65% of the platform’s creditors’ claims.

In June 2022, Celsius suspended withdrawals, exchanges, and transfers between accounts “due to extreme market conditions.” A month later, the company filed for bankruptcy, revealing a $1.2 billion hole in its balance sheet.

By August, it became known that the platform’s liabilities exceeded its assets by $2.85 billion.

Earlier in 2023, the New York Attorney General accused former Celsius CEO Alex Mashinsky of defrauding investors “out of billions of dollars.”

According to media reports, he faces up to 115 years in prison.