Embattled crypto lending platform Celsius is announcing a plan to distribute hundreds of millions of dollars worth of Bitcoin (BTC) and cash to its creditors.
In a new thread on the social media platform X, crypto firm Celsius Network – which filed for Chapter 11 bankruptcy earlier this year – says it will hand out $127 million to eligible creditors, marking its second distribution.
“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.”
A recent court filing noted that each creditor will receive cash crypto equal to about 60.4% of their claim against Celsius.
“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. The post-effective date debtors will determine the amount of BTC to be distributed to eligible creditors on account of their allowed claims based on a BTC price of $95,836.23.”
Celsius initially filed for bankruptcy in 2022 after it was forced to freeze customer withdrawals due to a lack of funds. At the time, the firm reported a staggering $1.2 billion deficit and cited “extreme market conditions” for its downfall.
In August, Celsius made its first distribution, giving out over $2.5 billion worth of cash and crypto to creditors.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Featured Image: Shutterstock/CaptainMCity
Read the full article here
