Celsius begins the distribution of the remaining $220.6 million for creditors according to the court-approved restructuring plan.
The distribution plan primarily focuses on Bitcoin and Ethereum, expected to help creditors recover between 67% and 85% of the amount held. The transfer requires KYC verification through Coinbase and PayPal.
MAIN CONTENT
Celsius distributes $220.6 million to creditors according to the restructuring plan.
The distribution fund includes amounts from legal fees, rejected claims, and reserves.
The main distribution is in Bitcoin and Ethereum, with the option to receive USD or Ionic Digital shares.
How is the funding for Celsius's third distribution formed?
The financial plan for the third distribution is based on various sources, including legal fees, reserves, and rejected claims.
Court documents specify that $63.2 million is allocated for legal and administrative costs. Additionally, $17 million from claims by Alexander Mashinsky and related entities have been removed. The reserve for disputed claims and conditional releases is $86.4 million. Seized and removed claims amount to $46.3 million and $7.7 million, respectively, contributing to the overall fund for distribution.
How is the distribution plan implemented?
The distribution will focus on the cryptocurrencies Bitcoin and Ethereum, requiring creditors to verify KYC information through the platforms of Coinbase and PayPal to ensure security and transparency.
Some corporate creditors may receive payments in USD. Meanwhile, shares in the Ionic Digital Bitcoin mining company created during the restructuring process enhance repayment capability. Estimates suggest that Celsius creditors will recover between 67% and 85% of their initial investment.
The third distribution not only facilitates quick repayment but also optimizes recovery value for creditors according to the court-approved restructuring plan.
Quoted from Celsius restructuring management, 2025
Before making a transfer, investors are warned about increasing phishing scams to protect their assets and personal information.
How do protections for creditors against fraud risks work?
Celsius management advises creditors to be cautious with phishing emails and fake websites requesting sensitive information during the pre-distribution and distribution phases.
Using reputable platforms like Coinbase and PayPal can help minimize risks by ensuring a transparent verification and transfer process, reducing the negative impact of professional phishing attacks.
What does this third distribution mean for affected creditors?
The third distribution plan is the final step in the restructuring process, marking the near completion of debt obligations to approved creditors.
With the amount transferred at the end of 2025, creditors can recover significant losses, helping to stabilize personal or business finances after the difficult period of this cryptocurrency lending platform.
Common issues when receiving distributions from restructuring cryptocurrency projects?
The KYC verification process and the conversion of payment methods can be challenging, especially for business stakeholders who need to receive USD instead of cryptocurrency.
Being vigilant against scams and understanding the distribution method is essential to protect optimal rights when participating in restructuring programs.
Frequently Asked Questions
When does Celsius's third distribution begin?
Expected to start from August 20, 2025, according to the plan and court approval.
Why is most of the money distributed in the form of Bitcoin and Ethereum?
Bitcoin and Ethereum are two widely used cryptocurrencies that can be easily transferred through reputable platforms, suitable for the restructuring process.
Can creditors receive cash?
Some corporate creditors may receive payments in USD depending on the agreement in the restructuring plan.
What role does the Ionic Digital plan play in the distribution?
Ionic Digital shares enhance repayment capability, thereby raising the recovery rate to between 67% and 85% for creditors.
How to avoid scams during the distribution phase?
Creditors must comply with the KYC process on the official platform, absolutely not providing personal information until the source is confirmed.
Source: https://tintucbitcoin.com/celsius-phan-phoi-lan-3-2206-trieu-usd/
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