Creditors See Another Payout
Celsius, the defunct crypto lender, will distribute $127 million to eligible creditors as part of its bankruptcy proceedings. This second payout will bring creditors’ total recovery to 60.4% of their claims, with funds distributed in cash or cryptocurrency.The Fall of Celsius
Celsius filed for bankruptcy in 2022 after a $1.2 billion deficit was revealed on its balance sheet. Former CEO Alex Mashinsky faces fraud charges and a potential prison sentence of over 100 years for allegedly misleading customers.Ongoing Challenges
Despite the payouts, Celsius’ bankruptcy case remains a cautionary tale for the crypto industry. Legal battles against its leadership continue, while creditors hope for further recoveries as the company works through its reorganization plan.
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