Celsius to distribute additional $127M from ‘Litigation Recovery Account’
Celsius, the bankrupt crypto lending firm, announced it will distribute an additional $127 million to creditors soon. This payment will come from the 'Litigation Recovery Account' and targets creditors in classes 2, 5, 7, 8, and 9, including retail borrower depositors and users of the 'Earn' program. However, users with convenience claims and those not entitled to liquid recovery rights will not receive funds. Payments will be made through previously used methods like PayPal, Venmo, or Coinbase, with cash options for those without verified accounts. Despite the distribution, many creditors expressed dissatisfaction, citing that the payouts are insufficient, with some claiming significant losses from their investments in the platform. Celsius filed for bankruptcy in July 2022, and its former CEO is facing trial in January 2025 for alleged deceptive practices regarding investment risks.
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