According to a Nov. 27 court filing, Celsius plans to begin making a second distribution of funds to creditors soon.
A total of $127 million will be delivered in Bitcoin (BTC) or USD to five classes of creditors, including Individual Borrower Deposit Claims, General Revenue Claims, Withholding Claims, Unsecured Loan Claims, and General Unsecured Claims. .
Each eligible creditor receives 60.4% of the claim amount as of the filing date.
After emerging from Chapter 11 bankruptcy in January of this year, the cryptocurrency company shut down its mobile and web apps on February 29 and began the process of repaying creditors. Some creditors also received shares in Ionic Digital, a company created from Celsius' restructured mining operations.
The payment follows a larger one in August, when Celsius distributed more than $2.53 billion to more than 251,000 creditors. The first payment covered approximately two-thirds of all eligible creditors and approximately 93% of eligible amounts.
After Celsius' business bankruptcy, it filed for bankruptcy relief under Chapter 11 of the Federal Bankruptcy Code on July 13, 2022. Former CEO Alex Mashinsky resigned in September 2022. He was later arrested on charges of fraud and is scheduled to go on trial in the United States in January 2025.
Roni Cohen-Pavon, Celsius' former chief revenue officer, pleaded guilty last year to market manipulation and fraud. He is scheduled to be sentenced next month.
In this proceeding, the company also paid a $4.7 billion settlement with U.S. authorities regarding fraud charges.
