Oct Logo
Search Icon
Oct Logo
Search Icon
Bitcoin iconETH
$0000
arrow icon0.61%
Celsius to Distribute $127M to Creditors as Bankruptcy Plan Advances

Celsius to Distribute $127M to Creditors as Bankruptcy Plan Advances

Celsius prepares a $127 million payout in Bitcoin, Ethereum, or USD for eligible creditors. Coinbase accounts are required for crypto payouts under the bankruptcy plan.

Image of Tanishq BodhTanishq BodhNews

Nov 27, 2024

Written By Tanishq Bodh

Author: Tanishq Bodh

Written On: Wed, 27 Nov 2024 23:45:45 GMT

Celsius Network, the embattled crypto lender, will distribute $127 million to creditors as part of its ongoing bankruptcy resolution. The funds will be allocated in Bitcoin (BTC), Ethereum (ETH), or US dollars (USD), based on eligibility criteria set out in the bankruptcy plan.

Key Details on Eligibility

Creditors seeking distributions in Bitcoin or Ethereum must have a verified Coinbase account linked to their Celsius records. If these requirements are unmet by November 9, 2024, payouts will be rerouted to USD via a designated distribution partner, as per the company’s recent announcement.

Legal Troubles for Alex Mashinsky

While the distribution progresses, Celsius’s former CEO, Alex Mashinsky, continues to face legal battles. A federal court recently denied his motion to dismiss fraud charges tied to the company’s collapse, including allegations of market manipulation involving the CEL token. Mashinsky faces up to 115 years in prison if convicted. His trial is set for January 2025.

What’s Next for Creditors

This latest payout represents a step forward for many affected by Celsius’s 2022 collapse during the crypto winter. While the resolution offers some relief, the broader implications of the bankruptcy and ongoing legal scrutiny serve as a reminder of the challenges within the crypto lending space.

Trusted

Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.

In this article

Key Details on Eligibility

Legal Troubles for Alex Mashinsky

What’s Next for Creditors

Hero Image
Share with your community!
FacebookXLinkedIn
Hero Image
Share with your community!
FacebookXLinkedIn

Related reads