In a significant move during its bankruptcy proceedings, Celsius has announced the distribution of $127 million to its creditors, marking the second payout in the ongoing financial restructuring. Court documents reveal that this amount represents 60.4% of the total claims made by eligible creditors. The settlement for Bitcoin payments will hinge on a weighted average price set at $95,836, with options available for creditors to choose between cash and cryptocurrency as payment methods.
What Payment Options Are Available?
Eligible creditors can expect to receive their payments either in cash or in cryptocurrency. The company has ensured that those opting out of cryptocurrency will receive their shares in cash, providing flexibility for creditors during this challenging time.
How Did Previous Payments Compare?
In January, Celsius had initiated its first round of payments, distributing approximately $2 billion in cryptocurrency to over 171,000 creditors, which accounted for 57.65% of overall claims. This initial move highlighted the company’s ongoing struggle with a $1.2 billion deficit as part of its bankruptcy filing in 2022.
Key takeaways from this development include:
- Celsius is distributing $127 million, covering 60.4% of total creditor claims.
- Creditors can opt for cash or cryptocurrency for their payments.
- The company previously paid out $2 billion in cryptocurrency to 171,672 creditors.
- Former CEO Alex Mashinsky faces serious fraud charges linked to the company’s downfall.
As Celsius advances in its bankruptcy process, the recent payment signals a step towards compensating creditors and stabilizing the company’s financial future.
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.
