Celsius Creditors to Get $127 Million in Second Distribution
els is preparing a second distribution of $127 million from its litigation recovery account to eligible creditors.
Funds will be allocated in Bitcoin (BTC), Ethereum (ETH) or USD, depending on eligibility.
Most Celsius creditors breathe a sigh of relief
According to the latest news from the bankruptcy court ArchiveAfter fees and expenses, the litigation administrator has allocated approximately $127 million for the second round of payments.
This amount will be paid to post-effective date debtors who are Celsius creditors entitled to illiquidity recovery under the Bankruptcy Code. corporate bankruptcy plan. Part of the funds will be set aside as reserves in accordance with plan provisions.
Notably, creditors wishing to receive distributions in BTC or Ethereum (ETH) must have an active Coinbase account. Account details must match those recorded by Celsius.
“Under the Coinbase Agreement, non-corporate creditors who have not received a Celsius distribution through Coinbase after November 9, 2024 will automatically be transferred to a U.S. Dollar (USD) distribution partner,” Celsius point out on X (formerly Twitter).
Meanwhile, former CEO Alex Mashinsky’s legal troubles continue. Earlier this month, a Federal court rejects Masinski’s request Two fraud charges dismissed Celsius collapse.
These include allegations of market manipulation involving the CEL token. The court allowed the case to proceed under the Commodities Exchange Act and Securities Exchange Act.
Mashinsky faces seven criminal charges related to the company’s collapse in 2022. If found guilty, he could face 115 years in prison.
Earlier this year, U.S. Judge Kaplan subpoenaed Sam Bankman-Freed Bring proceedings before the courts to resolve potential conflicts of interest involving their legal representatives. Prosecutor Lawyers express concern for Bankman-Friedformerly represented Alex Masinski.
According to reports, Kirkland & Ellis, a law firm that has managed the bankruptcy cases of Celeste, BlockFi, and Voyager Digital Revenue exceeds $120 million the cost of its work.
Overall, the Celsius bankruptcy saga appears to be coming to an end. 2022 crypto winter Impacted many users, some to a greater extent. However, the latest repayments may ease their hardship. Former CEO Mashinsky’s trial is scheduled to begin in January 2025.
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