Orhan 
Celsius, a name that has resonated in the cryptocurrency world due to its bankruptcy, has made headlines again with its efforts to restructure. The company announced a new payment round totaling $127 million to eligible creditors, aiming to fulfill approximately 60% of claims listed in its bankruptcy filing. This move is not only a financial step but also a crucial one for rebuilding trust in the sector and ensuring transparency in the legal process.
$127 Million Second Payment Plan
According to Celsius’ statement, eligible creditors will receive 60.4% of their claims in cash or cryptocurrency. Bitcoin’s value for the payment process was set at a weighted average price of $95,836.23. Creditors who cannot receive liquid cryptocurrency payments will be offered cash as an alternative. This flexible approach highlights a carefully designed solution to address the complex financial claims during the bankruptcy proceedings.
Roots of Celsius’ Collapse
Celsius declared bankruptcy in 2022 after revealing a $1.2 billion deficit in its balance sheet. The restructuring process began in November 2022, and by January 2023, the company completed its first major payment round. During that phase, $2 billion worth of cryptocurrency was distributed to 171,672 creditors, covering 57.65% of claims.
The downfall of Celsius was attributed to its risky business model and poor liquidity management, serving as a cautionary tale for the crypto sector. It underscored the regulatory gaps in the industry and highlighted the need for greater transparency in managing customer funds.
CEO Alex Mashinsky’s Legal Troubles
Former Celsius CEO Alex Mashinsky faces severe allegations following the company’s financial collapse. He has been accused by the SEC, FTC, and CFTC of misleading customers and committing fraud.
Mashinsky could face up to 115 years in prison if convicted. Earlier this month, a U.S. court rejected his request to dismiss two fraud charges, further complicating his legal battle.
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