Defunct crypto lender Celsius is set to distribute $127 million to eligible creditors as part of its second bankruptcy payout, according to a court filing submitted on Wednesday.
The filing states that this distribution will bring cumulative recoveries for creditors to approximately 60.4% of their claims’ value as of the bankruptcy filing date.
The payout will be made in either cash or liquid cryptocurrency, with Bitcoin valued at a weighted average distribution price of $95,836.23. Creditors unable to receive cryptocurrency through the designated agent will instead receive cash payments.
Earlier this year, Celsius initiated its first payout, distributing $2 billion worth of cryptocurrencies to 171,672 creditors, achieving a recovery rate of 57.65%.
Celsius filed for bankruptcy in 2022 after a $1.2 billion shortfall in its balance sheet was discovered. The company emerged from bankruptcy in November.
Legal challenges continue to follow the firm and its former CEO, Alex Mashinsky, who faces fraud charges and lawsuits from multiple regulators, including the SEC and FTC.
Mashinsky, who could face up to 115 years in prison, recently had a request to dismiss two fraud charges denied by a U.S. district judge.
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