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Celsius Network has advanced its Celsius creditor payout process initiating a third round of repayments totaling $220.6 million to creditors as part of its ongoing reorganization plan. Celsius announced on August 20 that it has completed another creditor distribution raising total recoveries to 64.9% of claims. The latest payout combines both crypto assets and cash delivered via platforms such as Coinbase, PayPal, Venmo and Hyperwallet.
This marks the third round of distributions. Earlier, creditors received $127 million in November 2024 and a much larger $2.53 billion payout to over 251,000 creditors in the wake of 2024.
The company has urged eligible creditors to update their information through the official claims portal to avoid delays in the creditor payout process. However, some claimants may still face additional delays due to ongoing legal and regulatory issues affecting repayment eligibility.
The collapsed of Celcius into bankruptcy in July 2022 was due to reckless financial bets, market turmoil and a severe liquidity crunch. Once promising investors yields of up to 18%, the platform leaned on unsecured lending and leveraged trading to fuel growth.
But when the 2022 crypto crash hit intensified by the Terra-Luna meltdown and DeFi losses, Celsius froze withdrawals and ultimately filed for Chapter 11 revealing a $1.2 billion hole in its balance sheet.
The implosion erased billions in customer funds, triggered regulatory crackdowns, and left Celsius’s leadership facing a wave of lawsuits. While the payout process has now surpassed the halfway mark, many creditors still face a slow recovery that falls short of full compensation.
Celsius creditor payout efforts are ongoing with the company emphasizing the importance of accurate information for timely payments. The payout is being distributed through multiple platforms to accommodate different creditor preferences. Despite progress, the creditor payout remains subject to legal and regulatory developments which may impact the timeline for some recipients.
As the Celsius creditor payout continues, creditors are encouraged to stay informed and proactive in updating their details. The Celsius creditor payout process highlights the complexities of large scale financial reorganizations and the challenges faced by affected customers. While the Celsius creditor payout has provided partial recovery, the journey toward full compensation remains uncertain for many.
