Celsius Prepares for Second Payout to Creditors as Mashinsky Awaits Court Date
Celsius is making progress in distributing funds to creditors with the announcement of a second round of payouts totaling $127 million. This is great news for those affected by the downfall of the defunct crypto platform.
The funds will be distributed in bitcoin (BTC) or USD to creditors in various classes, including retail borrower deposit claims, general earn claims, withhold claims, unsecured loan claims, and general unsecured claims. Each eligible creditor is set to receive 60.4% of the value of their claim as of the Petition Date.
After coming out of Chapter 11 bankruptcy earlier this year, Celsius shut down its mobile and web apps to focus on reimbursing creditors. Some creditors also received shares in Ionic Digital, a company formed from Celsius’ reorganized mining business.
This upcoming payout follows a significant distribution made in August, where Celsius distributed over $2.53 billion to more than 251,000 creditors. This first payout covered a large portion of eligible creditors and the value they were owed.
Former CEO Alex Mashinsky will go to trial in January 2025 after resigning in September 2022 and facing fraud charges. Additionally, former Chief Revenue Officer Roni Cohen-Pavon pled guilty to market manipulation and fraud and is awaiting sentencing next month.
It’s clear that Celsius is taking steps to settle its obligations and address the fallout from its financial troubles. These payouts are a positive step towards reimbursing those who were affected and moving towards closure on this chapter in the company’s history.
