In 2022, the cryptocurrency company Celsius, which filed for bankruptcy, will distribute $127 million to creditors as part of its second payment. Documents submitted to the court indicate that this payment will be made to eligible creditors and corresponds to 60.4% of total claims. The payment for Bitcoin will be based on a weighted average price of $95,836. Creditors will have the option to receive their payments in cash or cryptocurrency.
Payments Will Be Made in Cash or Cryptocurrency
According to the documents submitted to the court, eligible creditors will receive a total of $127 million as part of this second payment. The company announced that it would cover 60.4% of the creditors’ claims. Payments will be made in cash or liquid cryptocurrency, with creditors who do not receive cryptocurrency getting their payments in cash.
Celsius Cryptocurrency
It is worth noting that in January, Celsius made its first payment, distributing $2 billion worth of cryptocurrency to 171,672 creditors. This first payment covered 57.65% of total claims. The company’s bankruptcy filing in 2022 was centered around a $1.2 billion balance sheet deficit.
Former CEO Faces Fraud Charges
Following the company’s bankruptcy, former CEO Alex Mashinsky faced various fraud charges. Mashinsky has been accused of misleading customers by the SEC, FTC, and CFTC, and is currently on trial facing up to 115 years in prison. Earlier this month, a U.S. judge denied Mashinsky’s request to dismiss two charges in his indictment.
As Celsius begins to emerge from bankruptcy in November, it has started taking steps towards restructuring. The second payment draws attention as part of the company’s efforts to compensate creditors for their losses.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
