Catenaa, Tuesday, December 03, 2024 – Catenaa, Celsius Network, the cryptocurrency lender that collapsed in 2022, will distribute $127 million to creditors in its second payout under bankruptcy proceedings. The distribution, announced in court filings Wednesday, represents 60.4% of creditors’ claims as of the petition date.
Eligible creditors will receive payments in cash or cryptocurrency, depending on their capabilities to access liquid crypto through the designated agent.
The distribution follows an initial $2 billion payout earlier this year, which achieved a recovery rate of 57.65% for 171,672 creditors.
The company emerged from bankruptcy earlier this month, but regulatory scrutiny persists.
Alongside lawsuits from the SEC and other agencies, the Federal Trade Commission is investigating alleged customer misrepresentation.
Celsius’ downfall underscores the volatility of the crypto lending sector and has amplified calls for stricter regulations globally, with US lawmakers reviewing legislation aimed at consumer protections in the digital asset space.
