Celsius Network has executed its third major payout to creditors under its bankruptcy recovery plan, unlocking $220.6 million. This is a significant step towards reimbursing users who lost access to their funds following the company's collapse in 2022.
Overview of the Payout
Court filings indicate that the total of $220.6 million was compiled from various sources within the bankruptcy estate. The recovery of approximately $17 million from disallowed claims related to the firm's founder is now being distributed to victims.
Crypto and Equity Distributions
Eligible creditors will receive their allocations in Bitcoin and Ethereum, with verification managed through Coinbase and PayPal. This aligns with Know-Your-Customer standards. For corporate entities, distributions will be made in U.S. dollars. Celsius has also offered equity stakes in Ionic Digital, which aims to enhance overall recovery rates for creditors.
Recovery Prospects
The $220.6 million payout represents a significant advancement in Celsius Network's restructuring efforts. Each new distribution illustrates the progress made in releasing funds that were previously bound in litigation. Creditors may recoup between 67 and 85 percent of their positions, depending on the market and Ionic Digital's performance.
The $220.6 million payout under Celsius Network’s recovery plan brings renewed hope for significant asset recovery. The ongoing distribution of cryptocurrency and equity is creating a promising pathway for users who have awaited resolution for years.
