Celsius Repays $220.6M in Third Round, Creditors Reach 64.9% Recovery

Celsius has released its 3rd repayment cycle and paid out $220.6 million to creditors as part of its reorganization.

Quick overview

  • Celsius has initiated its 3rd repayment cycle, distributing $220.6 million to creditors, raising the total recovery rate to 64.9%.
  • Payments include cash and crypto through platforms like Coinbase and PayPal, and creditors are advised to update their claims information.
  • Celsius's reorganization plan, approved by 98% of creditors, aims for a final recovery rate of 67-85% and includes equity in its mining subsidiary.
  • Despite steady payments, many creditors are still awaiting full recovery following the company's Chapter 11 bankruptcy in July 2022.

Celsius has released its 3rd repayment cycle and paid out $220.6 million to creditors as part of its reorganization. The August 20th announcement brings the total recovery rate to 64.9%.

This cycle includes cash and crypto payments through platforms like Coinbase, PayPal, Venmo and Hyperwallet. Creditors should update their information on the claims portal to avoid delays.

Previous payments:

  • $127 million in November 2024
  • $2.53 billion in early 2024 to over 251,000 creditors

Celsius’s plan, approved by 98% of creditors, targets a final recovery rate of 67-85%.

Reorganization and Mining Equity

In addition to cash payments, Celsius is offering equity in its mining subsidiary, Ionic Digital Inc., a Bitcoin mining company. Certain creditors will receive stock allocations and get exposure to future profits in the space.

This is part of Celsius’s broader strategy to provide multiple recovery options to creditors. However, ongoing legal and regulatory proceedings are still affecting some claims and the payout timeline is still uncertain.

From Collapse to Partial Recovery

Celsius’s path to recovery is one of crypto’s most well known. In July 2022, the company filed for Chapter 11 bankruptcy after liquidity issues and leveraged strategies blew up during the market crash.

At its peak, Celsius promised users up to 18% annual returns and relied heavily on unsecured lending and DeFi exposure. Losses from the Terra-Luna collapse made things worse and forced a withdrawal freeze and a $1.2 billion deficit.

Key fallout:

  • Billions lost in customer funds
  • Increased regulatory scrutiny
  • Lawsuits against former leadership

Today, payments are steady but not complete. Over 50% of claims have been paid out but many creditors are still waiting for full recovery. This cycle is progress but shows how slow recovery is after a collapse that shook the entire retail crypto lending space.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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