According to recent court documents filed on November 27, Celsius is preparing to undertake its second round of fund distributions to creditors. This payout will comprise a total of $127 million, which will be disbursed in either bitcoin or USD to creditors spanning five distinct categories, including claims related to retail borrower deposits, general earn claims, withhold claims, unsecured loan claims, and general unsecured claims.
Creditors who are eligible will receive 60.4% of their claim's value as of the Petition Date. Following its emergence from Chapter 11 bankruptcy in January, Celsius ceased operations of its mobile and web applications on February 29 and initiated the process of reimbursing its creditors. Certain creditors also received shares in Ionic Digital, a company established from Celsius' reorganized mining operations. This forthcoming payout follows a significantly larger distribution made by the company in August, wherein Celsius disbursed over $2.53 billion to more than 251,000 creditors, covering roughly two-thirds of all eligible creditors and approximately 93% of the eligible claim value.
Celsius initially filed for bankruptcy relief under Chapter 11 on July 13, 2022, after the company's collapse, and its former CEO, Alex Mashinsky, resigned in September 2022. Mashinsky was later arrested on fraud charges and is scheduled to stand trial in the United States in January 2025. Additionally, the company's former Chief Revenue Officer, Roni Cohen-Pavon, pleaded guilty to market manipulation and fraud last year and is set to be sentenced next month. The proceedings also involved a $4.7 billion settlement between Celsius and U.S.
authorities regarding fraud allegations.