Key Points
- Celsius Network is initiating a second distribution of approximately $127 million to eligible creditors, bringing the total cumulative recovery rate to 60.4% of petition date claims. The distribution will be made primarily in Bitcoin, which was purchased by Celsius at a weighted average price of $95,836.23.
- The distribution comes from litigation proceeds and will only be available to creditors entitled to “Illiquid Recovery Rights,” excluding those who opted for Convenience Claims.
Second Distribution Details
The cryptocurrency lender Celsius Network has announced plans to distribute approximately $127 million to creditors in its second round of distributions, marking another significant milestone in its bankruptcy proceedings. The funds, sourced from litigation proceeds, will be distributed primarily in Bitcoin to eligible creditors who hold claims in various classes, including Retail Borrower Deposit Claims, General Earn Claims, Withhold Claims, Unsecured Loan Claims, and General Unsecured Claims.
Distribution Method and Eligibility
The Post-Effective Date Debtors have already converted the funds to Bitcoin at a weighted average price of $95,836.23. Notably, creditors who were previously assigned to receive distributions through Coinbase must have successfully received their initial distribution prior to November 25, 2024, to be eligible for this second round. Those assigned to PayPal or Venmo will receive email communications with specific codes to claim their distributions through a “Creditor Claim Form.”
Corporate Creditor Considerations
Corporate creditors face specific conditions for receiving their distributions. Those who submitted election forms by November 4, 2024, will receive their distributions in either cash or cryptocurrency based on their elected preference. However, corporate creditors who failed to submit election forms or submitted incomplete forms will automatically receive cash distributions. The plan explicitly excludes corporate creditors with Convenience Class Claims from this second distribution.
The Post-Effective Date Debtors continue to maintain strict security protocols, warning creditors about potential phishing attempts and emphasizing that all official communications will only come through specific authorized email domains. Creditors experiencing difficulties with their distributions are encouraged to create support tickets through the official Stretto platform for assistance.
