The post Celsius to Begin 3rd Distribution of $220.6 Million to Eligible Creditors appeared first on Coinpedia Fintech News
Celsius, a defunct cryptocurrency lending platform currently undergoing a court-approved reorganization plan, has announced the commencement of the third funds distribution to creditors. According to the announcement, Celsius will distribute $220.6 million to creditors through the approved methods.
After distributing 93 percent of the funds owed to creditors last year, Celsius will begin distributing the remaining funds to eligible creditors on August 20, 2025. Moreover, the approved restructuring plan, which involved creating the Bitcoin mining company Ionic Digital, intends to facilitate maximum funds recovery for the distressed creditors.
What are the Sources of Funds to Facilitate Celsius’ 3rd Distribution
According to the court filing, about $63.2 million of the Celsius funds will be used to facilitate legal fees among other administrative expenses. The funds from the disallowed claims of Alexander Mashinsky and related entities amount to $17 million.
The disputed and contingent claims reserve release amounted to $86.4 million. Meanwhile, $46.3 million came from forfeited claims and $7.7 million from expunged claims.
Closer Look at the Distribution Plan
The Celsius funds distribution will primarily happen in Bitcoin (BTC) and Ethereum (ETH). Approved creditors must pass the set Know-Your Customer (KYC) to facilitate funds transfer with highlighted platforms led by Coinbase Global Inc. (NASDAQ: COIN) and PayPal.
However, some Celsius users, particularly corporate creditors may receive their funds in the United States dollar. Meanwhile, the equity shares of the Ionic Digital will help the defunct lending platform repay a higher recovery plan to the distressed creditors, with some estimates suggesting the Celsius users could receive between 67 percent and 85 percent of their holdings.
Ahead of the planned third Celsius distribution, the creditors have been cautioned against rising phishing scams.