- Celsius estate announces additional $127 million payout to creditors, sourced from the Litigation Recovery Account.
- Payments will be made to eligible creditors across several classes, excluding those with convenience claims.
- Some creditors express dissatisfaction with the amounts received, calling them insufficient after significant losses.
Celsius, the bankrupt cryptocurrency lending platform, has revealed plans to distribute an additional $127 million to creditors. The announcement, made on November 28, detailed that the funds will come from the company’s Litigation Recovery Account. Eligible creditors across classes 2, 5, 7, 8, and 9 will receive this payout.
These groups include retail borrower depositors, Earn program users, and unsecured creditors with loan or general claims. However, those holding convenience claims or ineligible for illiquid recovery rights will not be part of this distribution. Payments will be made in cryptocurrency through previously used methods such as PayPal, Venmo, or Coinbase. For recipients without verified accounts, cash payments will be issued.
Dissatisfaction Lingers Among Creditors
While the upcoming payout marks another step in Celsius’ bankruptcy proceedings, many creditors remain frustrated. Social media posts from affected investors highlight their dissatisfaction, with some calling the payment insufficient compared to their initial losses.
One investor, Puffel, expressed frustration about unrecovered Bitcoin holdings, accusing the company of theft. Another, JCH, described the payout as “peanuts,” lamenting significant financial losses.
Celsius filed for bankruptcy in July 2022 after facing liquidity issues, and its former CEO, Alex Mashinsky, is facing fraud charges related to alleged misrepresentations about the platform’s risks. Mashinsky’s trial is scheduled for January 2025, as creditors continue to seek redress for their losses.
