Celsius Network is distributing $127 million to eligible creditors in its second payout under bankruptcy proceedings following its shutdown in July 2022.
Court’s Update on Celsius Network’s Payment to Creditors
According to the court documents, the latest distribution raises the total recovery rate to 60.4% of the eligible claims amount, based on the initial payout in January 2024, when approximately 57.65% of eligible claims were paid in liquid crypto assets or cash. This second distribution primarily consists of liquid crypto assets, with funds converted to Bitcoin at an average price of $95,836.23 to match the claim values. Notably, the first payout was made in August when Celsius Network distributed over $2.53 billion to approximately 251,000 creditors.
The document claims, “If an Eligible Corporate Creditor did not submit an Election Form by the November 4, 2024 deadline, or if it submitted an incomplete Election Form, such corporate creditor will receive a Cash distribution. Corporate creditors with Convenience Class Claims will not receive the Second Distribution.”
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Eligible Creditors must complete AML/KYC checks for their Celsius Account and may need to provide additional information to their assigned Distribution Agent.
The ruling further shared that to reduce costs and administrative burden on the Estates, the Debtors did not convert any cash from the Litigation Administrator into ETH. Creditors scheduled to receive cash distributions, whether due to the unavailability of a Distribution Agent for Liquid Cryptocurrency or because they chose to receive future distributions in cash, will have their cash held by the Post-Effective Date Debtors without being converted into BTC.
Payments apply to different creditor groups, such as retail deposit claims, general income claims, and unsecured loan claims. Meanwhile, former Celsius Network CEO Alex Mashinsky’s jury trial is scheduled for January 28, 2025, with a pre-trial hearing scheduled for January 16, 2025.
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Also Read: Ex Celsius CEO Alex Mashinsky to Return to Court on Nov. 13
