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Celsius to Make Second Payout to Creditors ‘Soon’ as Mashinsky Awaits Day in Court
Celsius will distribute $127 million to creditors in its second round of payouts.
Nov 28, 2024, 9:25 a.m.
What to know:
- Celsius has announced a second round of payouts to creditors of the defunct crypto platform.
- A former executive will be sentenced next month, with former CEO Alex Mashinsky going to trial in January.
Celsius will soon begin a second distribution of funds to creditors, according to a court filing on Nov. 27.
A total of $127 million will be given out in bitcoin or USD to creditors in five classes including retail borrower deposit claims, general earn claims, withhold claims, unsecured loan claims, and general unsecured claims.
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Each eligible creditor will receive 60.4% of the value of their claim as of the Petition Date.
After emerging from Chapter 11 bankruptcy in January this year, the crypto company shut down its mobile and web apps on Feb. 29 and has begun the process of reimbursing creditors. Some creditors also received shares in Ionic Digital, which is a company formed from Celsius’ reorganized mining business.
The upcoming payout follows a much larger one that the company made in August, when Celsius distributed over $2.53 billion to more than 251,000 creditors. The first payout covered about two-thirds of all eligible creditors and about 93% of the eligible value.
Celsius initially filed for bankruptcy relief under Chapter 11 on July 13, 2022 after the business collapsed. Its former CEO, Alex Mashinsky resigned in September 2022. He was later arrested on fraud charges and will go to trial in the U.S. in January 2025.
Former Chief Revenue Officer at Celsius, Roni Cohen-Pavon pled guilty to market manipulation and fraud last year. He is due to be sentenced next month.
The process also saw the company make a $4.7 billion settlement with U.S. authorities over fraud allegations.
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What to know:
- U.S. Senator Cynthia Lummis, a dedicated friend to crypto causes, has decided to exit the Senate after her first term.
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