- Celsius launches $220M payout, giving creditors long-awaited crypto relief.
- Creditors gain Bitcoin, Ethereum, and equity stakes in Ionic Digital.
- Recovery plan projects up to 85 percent return for victims.
Celsius Network has launched its third major creditor distribution, unlocking $220.6 million under the ongoing bankruptcy recovery plan. The payout is a significant step in the journey of reimbursing thousands of users who lost access to their funds after the lender’s collapse in 2022.
Court filings show that the amount was a compilation of various sources within the bankruptcy estate totaling $220.6 million. Disallowed claims relating to the firm’s founder resulted in the recovery of approximately $17 million, which is now being distributed to the victims as the assets are being redirected.
Besides, up to $86.4 million in reserves held on disputed claims, in addition to the $46.3 million secured on forfeited claims, were released. Meanwhile, the case remains a big burden on the budget, as $63.2 million was spent covering the legal and administrative expenses.
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Crypto and Equity Distributions
Creditors eligible for the payout will receive their allocations in Bitcoin and Ethereum, with verification handled through Coinbase and PayPal. This system ensures that people comply with Know-Your-Customer standards before they can access their funds. In the case of corporate entities, distributions will be made in U.S. dollars.
Along with direct crypto payments, Celsius has also offered equity in Ionic Digital, a newly formed entity. The equity is meant to increase the overall recovery rates, providing creditors with extra value beyond the digital assets.
It is estimated that, through crypto distributions and equity, creditors may recoup between 67 percent and 85 percent of their positions, depending on how well the market and Ionic Digital perform.
Growing Momentum in the Recovery Plan
The $220.6 million payout represents one of the most significant steps forward in Celsius Network’s restructuring journey. Every new release points out the improvement in unlocking funds that were previously tied up in litigation and lost claims.
This most recent round brings new hope, even though creditors have had to wait years and not know what would happen. With crypto distributions underway and equity shares now included, the pathway to significant recovery appears more evident than at any point since the collapse.
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