Celsius to Payback $220.6M to Eligible Creditors In Third Distribution

Following a string of sizable repayments to stakeholders, Celsius Network is preparing a third, substantial payout, this time amounting to $220.6 million. The planned distribution, which targets eligible creditors, marks another significant step in the company’s ongoing reorganization efforts.

The announcement revealed that eligible creditors will receive settlement in crypto. Under its authority, the plan administrator converted a share of litigation-derived cash and the ETH earmarked for payouts into BTC.

Every round of repayment inches Celsius closer to fulfilling its obligations and provides much-needed closure to creditors. The fund represents a meaningful lifeline for many, especially retail users who have waited through prolonged restructuring.

Unpaid Creditors Still Eligible for Earlier Distributions

As part of the third distribution plan, creditors without approved claims, who were meant to get liquid crypto on the effective date and during the second distribution, but did not complete a distribution conversion, are not included in this round.

Following the ongoing reorganization effort, each eligible creditor will have received cumulative payments, either in cash or crypto. This amounts to roughly 64.9% of the value of their claims. 

To determine payouts in BTC, the post-effective date debtors fixed the reference price at a little over $118,000 per BTC. This reflects the weighted average cost of coins acquired through litigation recoveries and ETH converted by the plan administrator.

Furthermore, any eligible creditor that has not received their first or second payment yet (and their claims are still valid), the post-effective date debtors will keep trying to send those distributions along with the third one. Creditors who have not received funds are also urged to check their email instructions, update their information in the Celsius claims portal, or reach out to customer care.

Coinbase Access Limited to Creditors with Prior Payouts  

Similar to the prior distributions, creditors scheduled to receive crypto via PayPal or Venmo will be notified by email. After the post-effective date, debtors will provide a code in that email, allowing creditors to claim funds through the designated “Creditor Claim Form.”

For individual creditors to get their third payout through Coinbase, they first needed to receive their initial crypto distribution there before the Coinbase agreement ended.

Corporate creditors who went through the Coinbase onboarding process and have approved claims tied to illiquid recovery rights will get their third payout in cash or crypto. The method of payment depends on their choice in the election form during the corporate creditor settlement. 

After declaring bankruptcy in July 2022, Celsius has made significant progress in addressing its debts. It has distributed over  $2.5 billion to creditors in cash and digital assets. In November 2024, Celsius executed a $127 million disbursement from its Litigation Recovery Account. It extends creditor recovery pathways in line with agreed concessions.

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