Celsius Pays $220 Million in Third Round of Creditors

• Celsius distributes $220 million in third round of payments
• Creditors achieve 64,9% recovery with reorganization plan
• Some will receive shares in Ionic Digital, a mining arm

Celsius announced on August 20 the start of the third round of distributions to creditors, totaling $220,6 million, bringing the total recovery to 64,9% of claims. Payments are being made in cryptocurrency and cash through platforms such as Coinbase, PayPal, Venmo, and Hyperwallet.

Celsius will begin a third distribution of $220.6 million to eligible creditors. More info here:

- Celsius (@CelsiusNetwork) August 19, 2025

This process follows two previous distributions: a $127 million distribution in November 2024 and a $2,53 billion distribution in early 2024, which benefited more than 251 creditors. The reorganization plan, approved in 2023 with the support of 98% of creditors, projects an ultimate recovery of between 67% and 85%.

In addition to payments in cash and digital assets, some creditors may receive equity in Ionic Digital Inc., a Bitcoin mining company created by Celsius to continue some of the company's operations.

The company warned that eligible creditors must keep their information updated on the official claims portal to avoid delays. However, some payments may still face obstacles due to legal and regulatory issues that affect the full release of funds.

Celsius's collapse in July 2022 was marked by high-risk financial practices, poor liquidity decisions, and the crypto market crisis that year. The company, which promised returns of up to 18% per year, was hit hard by exposure to the collapse of the Terra-Luna ecosystem and losses on decentralized platforms.

The crisis led to a freeze on withdrawals and a Chapter 11 bankruptcy filing, with an estimated deficit of $1,2 billion. The impact resulted in the loss of billions in customer funds, lawsuits against former leadership, and increased regulatory scrutiny.

With over 60% of the recovery already achieved, creditors continue to monitor the distribution rounds, which remain essential to mitigate the losses generated since the platform's shutdown.