Celsius to Distribute $127 Million in Second Round of Payouts to Creditors

Celsius is preparing to distribute another $127 million to eligible creditors from its Litigation Recovery Account.

The distribution will be made in Bitcoin (BTC), Ethereum (ETH), or US dollars, depending on the creditors’ preferences and eligibility.

This marks the second round of payouts following Celsius’s bankruptcy, with the funds being allocated to creditors with Illiquid Recovery Rights, as specified in the company’s bankruptcy plan. After accounting for administrative fees and expenses, the total payout will be approximately $127 million. A portion of the funds will be kept in reserve as required by the plan.

To receive their distribution in crypto, creditors need an active Coinbase account that matches the one on record with Celsius. For those who have not completed the distribution by November 9, 2024, their payments will automatically be processed in US dollars.

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Meanwhile, Celsius’s former CEO, Alex Mashinsky, continues to face legal issues. A federal court recently rejected his attempt to dismiss two fraud charges related to Celsius’s collapse, including allegations of market manipulation involving the CEL token. Mashinsky faces seven criminal charges stemming from the company’s 2022 downfall and could face up to 115 years in prison if convicted.

In the midst of the legal battles, the Celsius bankruptcy process is moving forward, with creditors set to receive the second payout, offering some relief after the turmoil of the crypto crash. Mashinsky’s trial is scheduled for January 2025, as legal proceedings continue to unfold.

Kosta Gushterov