Celsius

when

Higher

In 2022, <a href="https://cryptoticker.io/en/celsius-network-lawsuit-sues-its-own-users/" rel="noopener noreferrer nofollow">Celsius shocked</a> the financial world by filing for bankruptcy after revealing a staggering $1.2 billion gap in its finances. Now, the crypto lending platform is taking steps to repay its creditors, with a second payout of $127 million on the way. This marks another chapter in Celsius's journey to address its financial collapse and make things right for those affected.
<h2 id="strong-second-payout-brings-higher-recovery-for-creditors-strong">Second Payout Brings Higher Recovery for Creditors</h2>
<a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174911272480000000219.pdf" rel="noopener noreferrer nofollow">According to a court filing</a> made on Wednesday, Celsius, the crypto lender that went bankrupt, is now ready to pay out $127 million to eligible creditors as part of its ongoing bankruptcy proceedings.
This second payout means that creditors will receive around 60.4% of the value of their claims, based on what their claims were worth when <a href="https://cryptoticker.io/en/why-did-celsius-crypto-file-for-bankruptcy/" rel="noopener noreferrer nofollow">Celsius filed for bankruptcy</a>. If you're getting your payout in Bitcoin, it will be priced at a weighted average of $95,836.23. For those who can't receive cryptocurrency through the designated agent, the payout will be made in cash.
Earlier this year, in January, Celsius already made its first payout, handing out $2 billion worth of crypto to over 170,000 creditors. That payout resulted in a recovery of 57.65% of eligible claims.
<h2 id="strong-celsius-and-ceo-face-legal-battles-strong">Celsius and CEO Face Legal Battles</h2>
<a href="https://cryptoticker.io/en/celsius-waiting-to-unstake-470m-in-ethereum/" rel="noopener noreferrer nofollow">Celsius</a> filed for bankruptcy back in 2022 after a shocking $1.2 billion gap was found in its finances. The company has since managed to come out of bankruptcy as of November.
Last year, both Celsius and its former CEO, Alex Mashinsky, found themselves in hot water with major regulators like the SEC, FTC, and CFTC, all accusing them of misleading customers. On top of that, Mashinsky was hit with fraud charges, which could land him a prison sentence of up to <a href="https://www.theblock.co/post/316647/former-celsius-ceo-mashinsky-seeks-testimony-from-six-witnesses-as-he-faces-115-year-prison-sentence" rel="noopener noreferrer nofollow">115 years if convicted.</a>
According to <a href="https://www.theblock.co/post/328645/celsius-to-distribute-127-million-to-creditors-in-second-bankruptcy-payout" rel="noopener noreferrer nofollow">reports</a>, a U.S. district judge refused Mashinsky’s request to drop two of the fraud charges against him, meaning those allegations will still be part of his case.

Celsius to Pay $127M to Creditors in Second Payout

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