The second payment round to creditor of the bankrupt cryptocurrency lender Celsius was announced..
A court document filed on Nov. 27, states that this phase will involve the distribution of assets worth $127 million, which is equivalent to 2.5% of all creditor claims..
This payment follows a previous round of payments in August that returned 2,53 billion dollars to 251,000 creditor claims, or 57.65%.
The total payout now reaches 60% of all eligible claims. The company 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 filing in court, creditor will receive payments in Bitcoin or US Dollar cash depending on their eligibility.
Cash recipients will receive payments in a similar way to the crypto payment they received previously. In order to simplify the process, the company plans to continue using the same distributors as previously.
The company stated that in order to receive Bitcoin, creditors must be linked with a Coinbase account. The company stated that:
“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.”
Bitcoin payments will also depend on the market price. In the event that prices fall below $95,836, creditor claims may be reduced by less than 2.75 percent.
According to a Celsius-focused account posted on X, creditors who are unable or unwilling to accept cryptocurrency will be able sell their Bitcoin equivalent at the market rate, while receiving proceeds in US Dollars via various payment methods such as wire transfers, PayPal and Venmo.
It is interesting to note that former Celsius CEO Alex Mashinsky will be facing trial on the 28th January 2025. The pre-trial has been scheduled for 16.01.2025. Notably, a federal court recently denied his request to dismiss fraud charges related to the company’s collapse.
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