Key Notes
- Celsius Network has finally commenced the third phase of its payout.
- It is distributing approximately $220 million to affected creditors.
- As a result of this new development, the crypto lender has fulfilled 64.9% of creditor claims.
Celsius Network, a crypto lender hit hard by the 2022 market crash, has begun the third phase of its creditor payouts. It intends to distribute approximately $220 million to affected creditors who have yet to receive a refund.
Celsius Launches Third Creditor Payout Within a Year
On August 20, Celsius Network announced that it had embarked on its third round of repayment as part of its reorganization plans.
As a result of this new development, the crypto lender has sorted out about 64.9% of creditor claims. The company confirmed that the repayment was done in both cryptocurrency and cash. Coinbase, PayPal, Venmo, and Hyperwallet were utilized for the distribution of the assets.
Since February, when Celsius exited its 18-month bankruptcy, it has been trying to kick-start repayment to affected customers. At the time, it announced that it was ready to begin distributing over $3 billion in crypto and fiat currency to repay creditors.
To boost the funds available for distribution, the firm generated funds from several operations, including $250 million obtained by unstaking its Ethereum
ETH
$4 146
24h volatility:
3.6%
Market cap:
$499.99 B
Vol. 24h:
$40.18 B
holdings for redistribution.
Almost a year ago, Celsius noted that its bankruptcy administrator had successfully distributed more than $2.53 billion to about 251,000 creditors.
This represented two-thirds of its eligible creditors and 93% in terms of eligible value. Another $127 million was distributed to creditors in November 2024.
Going forward, Celsius Network has asked that claimants update their information through the official claims portal. This is to avoid any payment delays, although there are some claimants who may experience additional delays.
In this case, it could be an offshoot of ongoing legal and regulatory issues that can affect repayment eligibility.
Meanwhile, there is a possibility that some claimants will receive stock in Ionic Digital Inc., the Bitcoin
BTC
$112 805
24h volatility:
2.2%
Market cap:
$2.24 T
Vol. 24h:
$46.60 B
mining company that Celsius launched as part of its bankruptcy exit strategy.
US Court Allows Celsius Network’s Lawsuit Against Tether
Amid its reorganization plans, Celsius Network received approval from a United States court to proceed with its multibillion-dollar lawsuit against Tether.
The lawsuit alleged a breach of their lending agreement, which had to do with Bitcoin. The crypto lender argued that Tether “improperly” liquidated the Bitcoin collateral it provided following its collapse.
Precisely, it carried out a “fire sale” of over 39,500 Bitcoin in June 2022, using the proceeds to offset Celsius’s $812 million debt without following the stipulations in the agreement.
The firm asserted that the actions of the USD-pegged stablecoin issuer may constitute fraudulent and preferential transfers. It is believed that these are subject to avoidance under the United States Bankruptcy Code.
In response, Tether argued that the U.S. courts lack authority over the matter. The USDT issuer had tried to dismiss the case, but the judge rejected key points in its motion. This allowed Celsius Network’s claims to move forward.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
Godfrey Benjamin on X
Source: https://www.coinspeaker.com/celsius-launches-220m-third-payout-to-creditors/
