Celsius Begins $220M Distribution in Third Payout Round to Creditors

Celsius Network has started its third distribution, sending $220.6 million to creditors as part of its reorganization plan. Total recovery now stands at 64.9%, with a final target of 67-85%. Some creditors may also receive equity in Ionic Digital, Celsius's new mining firm. The distribution follows two previous payment rounds, with the aim of eventually recovering 67-85% of creditor claims.

Celsius Network has initiated its third distribution, sending $220.6 million to creditors as part of its ongoing reorganization plan. This latest payout brings total recoveries to 64.9% of creditor claims, with a final target of 67-85% [2].

The distribution follows two previous payment rounds, with the first round totaling $127 million in November 2024 and the second round distributing $2.53 billion to over 251,000 creditors in early 2024 [2]. The repayment includes both cryptocurrency and cash, distributed through platforms such as Coinbase, PayPal, Venmo, and Hyperwallet [2].

Some creditors may also receive equity in Ionic Digital, Celsius's new Bitcoin mining company, as part of the reorganization plan [2]. The plan, approved by 98% of creditors in 2023, aims for an eventual recovery of 67-85% of creditor claims [2].

Celsius Network's bankruptcy in July 2022 was primarily caused by risky financial practices, market volatility, and poor liquidity management [2]. The company's collapse was exacerbated by exposure to Terra-Luna and decentralized finance losses, leading to the loss of billions of dollars in customer funds, regulatory crackdowns, and lawsuits against its leadership [2].

The reorganization plan has been a slow process, with creditors experiencing delays due to ongoing legal and regulatory issues [2]. Despite the progress, many creditors still face a slow recovery that falls short of full compensation.

References:
[1] https://www.tradingview.com/news/tradingview:d92ced1f6f7ae:0-celsius-holdings-cfo-sells-5-000-shares/
[2] https://crypto.news/celsius-220m-distribution-third-payout-round-2025/