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Celsius Network to Distribute $127 Million to Creditors Amidst Ongoing Bankruptcy Proceedings

Bankrupt crypto lender Celsius Network has revealed plans to distribute $127 million in cash and Bitcoin to its creditors. This announcement marks the second such distribution, deriving funds from the Litigation Recovery Account for eligible creditors across various classes. Those eligible will receive approximately 60.4% of their claimed value, with the payouts being issued in either Bitcoin or US dollars, depending on their eligibility. This decision follows a prior distribution where over $2.5 billion was distributed to creditors, highlighting a continued effort to reconcile the company's debts. Initially, Celsius faced severe liquidity issues, leading to bankruptcy in 2022 after freezing customer withdrawals, during a period of intense market instability. The exact amount of Bitcoin to be allocated will be calculated using a Bitcoin price of $95,836.23, as per the latest court documents. This ongoing process is part of Celsius's efforts to rectify its substantial financial deficit and mitigate the fallout from its operational collapse.