Celsius to Distribute $127 Million: What It Means for Creditors
The now-defunct crypto lender Celsius has announced its second bankruptcy payout, totaling $127 million. Eligible creditors will receive around 60.4% of their claim's value in cash or liquid cryptocurrency.
The now-defunct crypto lender Celsius has announced its second bankruptcy payout, totaling $127 million. Eligible creditors will receive around 60.4% of their claim's value in cash or liquid cryptocurrency, calculated using a weighted average Bitcoin price of $95,836.23. This follows a previous $2 billion payout earlier this year, which recovered 57.65% of claims.
Why Did Celsius Collapse?
Celsius filed for bankruptcy in 2022 after uncovering a $1.2 billion financial shortfall. Investigations revealed alleged misconduct by former CEO Alex Mashinsky, who now faces fraud charges and potential prison time.
What Happens Next?
With Celsius emerging from bankruptcy, these payouts provide some relief for creditors. However, legal actions against its former leadership continue, keeping the spotlight on the case.
For more updates, stay tuned to cryptocurrency news.