Celsius Network Distributes $127 Million in Bitcoin to Creditors

Celsius Network, once a major player in the cryptocurrency lending market, has initiated its second round of distributions to creditors, totaling $127 million. This follows the company’s earlier distribution of approximately $3 billion in crypto and fiat currency, a move resulting from the successful approval of its reorganization plan earlier this year.

This latest distribution targets eligible creditors impacted by Celsius’s collapse and subsequent Chapter 11 bankruptcy filing, which temporarily froze withdrawals. Court documents reveal the funds for this distribution were converted from cash received through Litigation Administrators into Bitcoin (BTC). This conversion aimed to streamline the process and minimize administrative complexities.

Details of the Second Distribution

Each eligible creditor will receive a distribution representing roughly 60.4% of their claim’s value as of the petition date. The BTC used in this distribution is based on a weighted average price of $95,836.23, reflecting Celsius’s purchase price. Creditors will receive their allocations in either cash or liquid cryptocurrency.

For creditors expecting distribution via Coinbase who haven’t yet received their funds, Celsius will hold the cryptocurrency and convert it to cash at an appropriate time. The documents also highlight initial distribution discrepancies: some creditors received 57.87%, others 57.65%. To rectify this, those who received higher initial payments will see a reduction in their second distribution.

Important Information for Creditors

Creditors are urged to verify their distribution information and update it if necessary, particularly if a change of distribution agent is required. To address any issues, creditors can submit a Customer Care Ticket.

Ongoing Bankruptcy Proceedings

Celsius acknowledges the ongoing complexity of its bankruptcy proceedings, including pending litigation that might affect creditor eligibility for future distributions.

CEL Token Performance

Currently, the Celsius native token, CEL, trades at $0.23, a slight 1% increase over 24 hours. Unlike many other cryptocurrencies, CEL hasn’t experienced significant growth in the last three weeks. Year-to-date, it’s down 2%, but compared to its all-time high of $8 in June 2021, before the company’s collapse, it represents a concerning 97% decline.