Second Distribution By Celsius Network: Creditors To Receive Bitcoin Valued at $95,000 Each

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As a researcher who has closely followed the cryptocurrency market for several years now, I must admit that the latest developments at Celsius Network have been quite intriguing. The second round of distributions, worth $127 million, is a significant step forward in what has been a tumultuous journey for the company since its bankruptcy filing.

Previously a key figure in the cryptocurrency lending sector, Celsius Network has now started its second phase of payouts to creditors, totaling $127 million. This comes as a continuation of their previous attempts to distribute approximately $3 billion in both crypto and traditional currency, a move made possible after a favorable vote on their restructuring plan earlier this year.

The most recent distribution has been designed for creditors who meet eligibility criteria and are impacted by Celsius’ bankruptcy filing and subsequent pause in withdrawals during their restructuring process.

Celsius Implements Changes To Second Distribution

Based on court records, the money distributed was changed from cash obtained from Litigation Administrators into Bitcoins (BTC), which were provided to creditors whose claims had been approved. This change was made to simplify the distribution procedure and reduce administrative tasks.

In simpler terms, each eligible lender will get approximately 60.4% of the value of their claims as they stood on the petition date. This distribution amount is calculated using an average price of $95,836.23 per BTC, which was the price Celsius paid for acquiring the cryptocurrency specifically for this purpose, taking into account its weighted average price.

The system set up for distribution aims to guarantee that creditors get their assigned funds, whether in traditional currency or digital cryptocurrency. In case a creditor was set to receive a distribution through Coinbase, a US-based crypto exchange, but didn’t receive it by the specified date, the company will keep the liquid cryptocurrency on hold for that specific creditor and convert it into cash when necessary.

Bankruptcy Challenges

As a researcher delving into these documents, it’s clear that some creditors were initially distributed funds based on different recovery rates, such as 57.87% for certain individuals and 57.65% for others. To address this inconsistency, those who received a higher initial distribution should expect a proportionate adjustment in their subsequent distribution.

Creditors who are qualified to receive payments should make sure their contact details are current, particularly if they plan to switch their representative. If a creditor faces problems with their payments, they can submit a support request, referred to as a Customer Care Ticket, to get help resolving the issue.

Beyond this distribution, Celsius is also committed to navigating the intricacies of its bankruptcy process. This involves handling ongoing lawsuits that could potentially impact some creditors’ entitlement to future distributions.

Currently as I’m typing this, the company’s own token, CEL, is being exchanged for $0.23, showing a minor rise of 1% within the last day. It’s worth noting that CEL is among the limited number of cryptocurrencies in the market that haven’t seen a substantial upward trend over the past three weeks.

To date this year, the token has declined by 2%, which might not seem alarming at first glance. However, when considering its current trading level and its peak record high, the situation appears more concerning. Currently, it is 97% below its all-time high of $8 achieved in June 2021, before the company’s downfall.

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2024-11-29 21:41