Celsius Continues Repayments with $344.4M Round

Bankrupt crypto lending platform Celsius Network has announced its fourth round of repayments to users. The decision marks another major step in the company’s ongoing efforts to return funds to its customers. According to the firm, the latest distribution will cover 8.2% of total claims, bringing the total recovery for users to roughly 72.1%.

The company noted that the distribution date has not been finalized. However, it is expected to take place in the next few weeks. Celsius said it will provide more updates as the process begins.

Future Payouts to Shift to Stablecoins and Cash

For this fourth distribution, users will have the option to receive their recovery in BTC or cash through their previous agent. It is important to note that this will be the last distribution offered in the leading crypto asset. All future repayments will be made in stablecoins or cash to simplify the process and reduce the risks associated with crypto volatility.

Notably, the $344.4 million being distributed comes from three main sources. First, $73.7 million has been unlocked from Celsius’ reserves. Second, $14.3 million comes from forfeited funds. Lastly, $256.4 million comes from the company’s Litigation Fund, which includes contributions from Tether. Together, these funds make up the total for this latest repayment round.

Celsius has also disclosed that it has not yet acquired the BTC for this particular round. The company plans to announce the bitcoin purchase price closer to the distribution date. While this is a remarkable move, it ensures transparency and allows users to know the exact value of their repayment in BTC.

Celsius Recovery Hits 72.1%

For many users, the continued distributions are a positive sign that the recovery process is moving forward. While 72.1% of total claims have now been recovered, the firm is working to complete the remaining repayments in stablecoins or cash in the upcoming rounds.

The move is part of Celsius’ plan to resolve its financial issues, providing users with full access to their funds after the company faced liquidity challenges. Moreover, since filing for bankruptcy, Celsius has been gradually unlocking assets and coordinating repayments through a structured plan.

Ultimately, users are advised to stay informed about company announcements to ensure payments are received as the distribution date approaches. Meanwhile, the company, led by CEO Alex Mashinsky, filed for bankruptcy in July 2022.

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