Celsius Network has kicked off its third round of repayments, sending $220.6 million to creditors as part of its court-approved reorganization plan. The payout marks another step forward in the company’s long road back from its 2022 collapse.
Third Distribution Update
Announced on August 20, the latest repayment brings total recoveries to 64.9% of creditor claims. The distribution includes both crypto and cash, sent via platforms such as Coinbase, PayPal, Venmo, and Hyperwallet.
Previous distributions included:
- $127 million in November 2024, and
- A massive $2.53 billion payout earlier in 2024 to more than 251,000 creditors.
Under the plan approved by 98% of creditors in 2023, Celsius aims for a 67%–85% total recovery. Some creditors may also receive equity in Ionic Digital Inc., the company’s newly launched Bitcoin mining subsidiary.
Claim Updates Still Required
Celsius has urged eligible creditors to update their details in the claims portal to avoid payout delays. However, some creditors could face longer waits due to ongoing legal and regulatory issues that still affect repayment eligibility.
From Collapse to Partial Recovery
Celsius filed for bankruptcy in July 2022, after its risky strategies and exposure to the Terra-Luna crash left it with a $1.2 billion hole.
Key factors in the downfall included:
- Over-leveraged trading,
- Reliance on unsecured lending, and
- Unrealistic promises of returns up to 18% annually.
When the market crashed, Celsius froze withdrawals, sparking outrage among customers and prompting lawsuits and regulatory crackdowns.
Today, repayments have passed the halfway mark but many creditors still face slow recoveries that fall short of full compensation.
Bottom line: Celsius has now repaid nearly two-thirds of creditor claims, with more to come. While full recovery remains uncertain, progress is being made as the company rebuilds through its mining arm and reorganization plan.
