Celsius, a troubled cryptocurrency lending platform, has announced a new plan to distribute hundreds of millions of dollars worth of Bitcoin and cash to its creditors. The company, which filed for Chapter 11 bankruptcy earlier this year, revealed that it will be distributing $127 million to eligible creditors in its second distribution.
According to a recent announcement on social media platform X, Celsius Network will be providing this second distribution from the Litigation Recovery Account to creditors in Classes 2, 5, 7, 8, and 9. The distribution will be made in either Bitcoin or USD, depending on the eligibility of the creditors.
In a court filing, it was noted that each creditor will receive cash or cryptocurrency equivalent to approximately 60.4% of their claim against Celsius. The value of Bitcoin to be distributed will be based on a price of $95,836.23.
Celsius initially filed for bankruptcy in 2022 after facing challenges that led to the freezing of customer withdrawals due to insufficient funds. The company reported a significant deficit of $1.2 billion at the time, attributing its downfall to extreme market conditions.
In August, Celsius conducted its first distribution, providing over $2.5 billion worth of cash and cryptocurrency to creditors. This latest distribution marks another step in the company’s efforts to address its financial challenges and fulfill its obligations to creditors.
As Celsius continues to navigate its bankruptcy proceedings and work towards resolving its financial issues, the distribution of Bitcoin and cash to creditors serves as a significant development in the company’s restructuring efforts.
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