Celsius

Bitcoin

Bankrupt crypto lending firm Celsius has announced plans to distribute an additional $127 million to creditors.
The company’s estate revealed that this distribution will be made from its “Litigation Recovery Account ” and will benefit claimants in specific classes.
<h2 id="distribution-details">Distribution Details</h2>
According to a November 27&nbsp;<a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174911272480000000219.pdf" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">filing</a>, the funds will be disbursed to those with claims in classes 2, 5, 7, 8, and 9. These include retail borrower deposit claims, general earn claims, withhold claims, unsecured loan claims, and&nbsp;general unsecured claims.
Eligible creditors can expect their payout in Bitcoin or cash, depending on their qualifications. Additionally, the distribution will follow the same payment methods used during a previous exercise in August: PayPal, Venmo, or Coinbase.
Lenders who do not have a verified account with these platforms will instead receive cash payments. Corporate claimants may also receive the payout, though those with convenience claims will be excluded from this round.
<blockquote>
 “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,” the firm stated.
</blockquote>
The first round of payments saw Celsius <a href="https://cryptopotato.com/celsius-begins-creditor-distribution-as-bankruptcy-proceedings-near-end/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">return</a> $2.53 billion to 251,000 creditors, representing 57.65% of total claims. This second payout will cover 60.4% of eligible claims, with the amount to be received based on a BTC price of $95,836.23.
<h2 id="complaints-and-trial-update">Complaints and Trial Update</h2>
While the latest development is positive for many creditors, some users have expressed dissatisfaction with the amount they are getting. On X, one former Celsius customer <a href="https://x.com/MrMasternode/status/1861918320632693046" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">noted </a>they are still short in six figures after the payments.
Another investor, identified as JCH, <a href="https://x.com/jorgechava/status/1861898572637057302" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">lamented</a> losing 8 BTC due to Celsius’s collapse, adding that they would have been a millionaire today had the company not failed. JCH later <a href="https://x.com/jorgechava/status/1862027604976341397" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">described</a> the payout as “peanuts,” expressing frustration over the limited amount they got.
Following Celsius’ collapse in 2022, its former CEO, Alex Mashinsky, was arrested and charged with fraud in July 2023 for allegedly misleading depositors about the risks associated with investing in the platform.
The former executive will <a href="https://cryptopotato.com/heres-when-alex-mashinsky-will-appear-in-court-for-fraud-and-market-manipulation-charges/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">face</a> trial on January 28, 2025, with a pre-trial hearing scheduled for January 16. A federal court recently denied his request to <a href="https://cryptopotato.com/alex-mashinsky-fights-back-seeking-dismissal-of-us-ftcs-case/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">dismiss</a> fraud charges related to the company’s collapse.
Judge John Koeltl <a href="https://www.bloomberglaw.com/public/desktop/document/UnitedStatesvMashinskyNo23cr347JGK2024BL403666SDNYNov082024CourtO?doc_id=X169V2NMG000N" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">ruled</a> that the legal team’s arguments to have the charges dismissed were “either moot or without merit.” The verdict leaves seven counts on the indictment for Mashinsky to face in his upcoming trial.
The post <a href="https://cryptopotato.com/celsius-to-disburse-another-127m-from-its-legal-recovery-account/" rel="noopener noreferrer nofollow">Celsius to Disburse Another $127M From Its Legal Recovery Account</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Celsius to Disburse Another $127M From Its Legal Recovery Account

Table of Contents

CryptoPotato_News

Other articles published on Nov 29, 2024

Bitcoin (BTC) Makes Final Push to $100,000

Is Cardano (ADA) Better Than Ripple (XRP)? Expert Insights

Santa Coin Ushers in the 2024 Yuletide Season with Festive Promotions and a Legacy of Generosity

Shiba Inu Gains 39% in November: What’s Next for SHIB in December?

Shytoshi Kusama Reveals Plan to Elevate Shiba Inu to Top Five Cryptocurrencies

DeFi Tokens See 35% Growth While Memecoins Hit a Plateau

Join our free newsletter for daily crypto updates!