Celsius Network Initiates $220 Million Creditor Payout in Third Phase
Celsius Network is initiating its third round of creditor payouts, distributing approximately $220 million to affected creditors. This follows the company's exit from an 18-month bankruptcy in February.
Key Points
- The payout will cover about 64.9% of creditor claims.
- Repayments are made in cryptocurrency and cash using platforms like Coinbase, PayPal, Venmo, and Hyperwallet.
- Over $3 billion is planned for distribution to repay creditors.
- Celsius has generated funds through operations, including unstaking $250 million in Ethereum ETH.
- Previously, over $2.53 billion was distributed to around 251,000 creditors.
- Claimants must update their information via the official claims portal to avoid payment delays.
- Some claimants may receive stock in Ionic Digital Inc, a company launched by Celsius as part of its bankruptcy exit strategy.
Legal Developments
- A U.S. court has allowed Celsius to pursue a lawsuit against Tether for alleged breach of lending agreement related to Bitcoin collateral.
- The lawsuit claims Tether improperly liquidated over 39,500 Bitcoin during Celsius's financial issues, offsetting $812 million in debt.
- Tether's attempts to dismiss the case have been rejected, allowing Celsius's claims to proceed.